The Nigerian government has formally charged Tigran Gambaryan, a high-ranking official from the global cryptocurrency exchange Binance, in an Abuja courtroom, with allegations spanning tax evasion and money laundering.

Gambaryan, an American citizen serving as Binance's head of financial crime compliance, along with Nadeem Anjarwalla, a British-Kenyan and Binance's Africa regional manager, were apprehended following accusations by Nigeria’s Federal Inland Revenue Service (FIRS) of tax evasion last week.

The allegations focus on several violations, including the evasion of value-added tax (VAT) and company income tax, neglecting to file tax returns, and aiding Binance users in circumventing tax obligations. The Nigerian government also criticizes Binance for not registering for tax purposes with the FIRS, thus defying the nation's tax laws.

Highlighted in the legal proceedings is Binance’s purported neglect to collect and remit a variety of taxes to the federation as demanded by the FIRS Establishment Act 2007 (amended), which specifies severe penalties, including imprisonment for such infringements.

Tigran Gambaryan, high-ranking Binance employee

Specific accusations detail Binance's failure to issue VAT invoices, impeding the accurate calculation and payment of taxes by its users.

Gambaryan faced these charges publicly for the first time since his detention during his court appearance, without entering a plea. He is slated for formal arraignment on charges of money laundering and tax evasion on April 8 and 19, respectively.

While Binance itself hasn’t been charged by Nigeria’s Economic and Financial Crimes Commission (EFCC) or the FIRS, Gambaryan might represent the exchange in facing these charges.

Gambaryan’s attorney argued that he lacks the authority within Binance to represent it in court, a stance complicated by Nigerian law requiring the exchange, as the primary defendant, to be served before Gambaryan can plea.

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Binance Reaction

Binance has called for Gambaryan’s release, emphasizing his role as a crucial figure in combating financial crime, with no direct influence over Binance's corporate decisions.

The statement from Binance outlined Gambaryan's significant contributions to law enforcement efforts globally, aiding in the freezing and seizing of over $2.2 billion in illicit assets.

Furthermore, Binance disclosed ongoing discussions with the Nigerian government, requesting leniency for Gambaryan given his non-decisional role at the company.

A heartfelt plea from Gambaryan’s wife was also shared, imploring Nigerian authorities for her husband's release, highlighting his dedication to preventing and investigating criminal activities on the platform, and stressing his inability to influence Binance’s corporate policies affecting Nigeria.

In related news, it was reported that Nadeem Anjarwalla, also detained in Nigeria, managed a daring escape from custody, raising questions about the security measures in place, as he fled the country using a Kenyan passport.