Legal Twist: Binance Executive to Stand Trial in Nigeria Amid Tax Evasion Allegations
In a recent development, the Nigerian judiciary has authorized Tigran Gambaryan, a top executive from Binance currently under arrest, to stand trial for allegations of tax evasion linked to the cryptocurrency giant. Despite Binance’s defense claiming the accusations lack merit, the court has found sufficient grounds for Gambaryan to act as Binance’s representative in the case.
Court Empowers Binance’s Gambaryan to Face TrialÂ
The decision by the Nigerian court to allow Tigran Gambaryan, Binance’s Chief Financial Compliance Officer who is presently detained, to represent the company in the tax evasion case has been a pivotal moment. Judge Emeka Nwite, presiding over the case, has determined that Gambaryan’s position and his nomination as the company’s representative make him a suitable candidate to respond to the charges.
This ruling challenges the stance of Binance and its CEO, who have maintained that Gambaryan holds a non-executive role with no influence over corporate decisions. Bitcoin.com News reports that despite arguments presented by Binance portraying Gambaryan as a dedicated professional in law enforcement, the judge has not been persuaded to order his release.
Binance CEO Cautions Against Precedent in Gambaryan’s DetentionÂ
Richard Teng, Binance’s CEO, has expressed concerns regarding the implications of the Nigerian authorities’ continued detention of Gambaryan, suggesting it could set a concerning precedent. Teng has also insinuated that the Nigerian authorities might use Gambaryan’s situation as leverage in their negotiations with Binance, a sentiment echoed in a Reuters article.
Binance’s Response to Court’s DecisionÂ
Reacting to the court’s May 17 decision, a Binance spokesperson voiced the company’s disappointment over the ongoing detention of Gambaryan, who they claim holds no decision-making authority within Binance. The spokesperson reiterated the company’s view that the charges are unfounded and called for Gambaryan’s release while dialogue with Nigerian officials persists.
Notably, Nigeria’s Federal Inland Revenue Service (FIRS) has yet to formally accuse Binance of tax evasion. However, indications suggest that Gambaryan might be charged in connection with the company’s tax matters. This case continues to unfold, highlighting the complexities of cryptocurrency operations and regulatory compliance.
