Tax Evasion Charges Dropped

Nigeria has announced that tax evasion charges against two executives from Binance, the world's largest cryptocurrency exchange, have been dropped.

According to a tweet by Nigerian journalist Alexander Onukwue, the Federal Inland Revenue Service (FIRS) of Nigeria has withdrawn the charges against Tigran Gambaryan, Binance's head of financial crime compliance, and Nadeem Anjarwalla, the exchange's director for Africa operations.

In late March, the FIRS initially charged Binance with four counts of tax evasion. Gambaryan and Anjarwalla were named as the second and third defendants.

The charges included:

• Failure to register with the FIRS.
• Failure to deduct value-added taxes (VATs) from crypto trades.
• Aiding users in neglecting their taxes.
• However, the tax evasion charges have now been dropped, making Binance the sole defendant in the case.

Ongoing Legal Battles

However, the executives still face a money laundering case from the Economic and Financial Crimes Commission (EFCC). The Nigerian authorities have accused Binance of facilitating illicit funds transfers of over $26 billion without adequate oversight.

The Central Bank of Nigeria (CBN) has also alleged that Binance engaged in money laundering, totaling $35.4 million.

Detention and Escape

Since February, Tigran Gambaryan and Nadeem Anjarwalla have been detained in a heavily guarded guest house. They had come to Nigeria for talks with the government.

Anjarwalla escaped custody in March during the Ramadan fast, prompting authorities to move Gambaryan to the Kuje prison in Abuja. Gambaryan remains detained, with restricted access to his passport and supervised communication with his legal team and family.

Controversial Allegations

The saga between Nigeria and Binance began amidst a massive devaluation of the Nigerian Naira against the dollar. Nigerian authorities blamed Binance for contributing to the forex crisis by allowing traders to manipulate the market and speculate on the currency.

Binance has strongly refuted these allegations, calling for their dismissal and stating that Gambaryan was not a decision-maker within the company.

"Binance CEO Richard Teng revealed that Nigerian government officials had demanded a $150 million bribe to settle the criminal charges."

Nigerian authorities, however, called these claims a diversionary tactic and an attempted act of blackmail. Meanwhile, U.S. lawmakers have asked the president to secure Gambaryan's release due to his failing health.

Market Reactions

Binance Coin (BNB) has felt the impact as these legal battles unfold. At the time of writing, BNB was trading at $610, down more than 13% over the past seven days. This comes after the token hit a new all-time high of $725.

Overall, the developments surrounding Binance and its executives in Nigeria highlight the growing scrutiny and regulatory challenges cryptocurrency exchanges worldwide face.

Industry observers keenly await the court's decision on the money laundering charges while the involved parties continue to navigate the complex legal landscape.