The Federal High Court in Abuja has made a significant ruling in the ongoing tax evasion case against the cryptocurrency exchange platform, Binance, by the Federal Inland Revenue Service (FIRS). In a development that narrows the focus of the case, the court has discharged Tigran Gambaryan, a 39-year-old American, and the fleeing Nadeem Anjarwalla from the charges.
During the resumed proceedings on Friday, Binance’s counsel, Tonye Krukrubo, informed the court that his client has appointed a Nigerian representative, Ayodele Omotilewa, a move confirmed by the FIRS counsel, Moses Idehu.
The court heard, “Counsel for Binance, Tonye Krukrubo told the judge that his client has forwarded the name of its official representative to the FIRS and to the court.”
Acting on this information, the trial judge, Emeka Nwite, granted the FIRS permission to substitute all previous charges with a fresh amended one dated June 13, 2024. In this new charge, Binance is now listed as the sole defendant, effectively severing ties between the case and the previously implicated individuals, Gambaryan and Nadeem.
“In FIRS’ fresh charge Binance is now listed as the only defendant implying Gambaryan and Nadeem are no longer associated with its case, with July 12 fixed for the new Binance executive to take his plea,” the court noted.
The charge against Binance alleges that the trading platform offered services in the buying and selling of cryptocurrencies, as well as remittance and transfer of those assets, to Nigerians while failing to deduct the necessary Value Added Taxes (VAT) arising from its operations.
While the FIRS urged the court to direct the Binance representative to enter the dock and take his plea on behalf of the corporation, Krukrubo and Gambaryan’s legal team contended that Nigerian law does not mandate such an action for a company representative in a lawsuit.
The court heard, “Krukrubo and Gambaryan’s legal team contended that Nigerian law does not mandate a representative of a company that is sued to stand inside a dock and take a plea.”
“They argued that a representative of a company that is sued may not need to attend proceedings and can even write a letter to the court in respect of the company’s position on a matter.”
With the FIRS confirming that the matter is now solely between the federal government and Binance, the court’s decision to discharge Gambaryan and Nadeem from the case marks a significant development in the ongoing legal proceedings.