Charges and Proceedings

Binance faces four counts of tax evasion, including the failure to register with Nigeria’s Federal Inland Revenue Service (FIRS). During the proceedings, Binance’s lawyer, Ayodele Omotilewa, argued for the dismissal of all charges, stating that the case lacks merit. On July 12, Omotilewa entered a not-guilty plea on behalf of Binance.

In June, the Federal High Court in Abuja had already cleared two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, of similar charges. However, they still face separate money laundering allegations, which they deny.

Government's Stance and Actions

The Nigerian government attributes some of its economic difficulties to Binance, particularly its role in trading the Nigerian naira during severe dollar shortages. This has led to currency devaluation and other economic challenges. On February 20, Binance restricted USDT purchases with naira on its P2P platform due to fraud concerns, and by March 5, it ceased all naira services, halting deposits and withdrawals and delisting naira trading pairs.

Following these events, Nigerian authorities blocked access to major crypto exchanges, including Binance, over concerns of currency manipulation and money laundering. This led to the detention of Binance officials in Abuja. The Central Bank of Nigeria (CBN) has instructed fintech companies to identify and report accounts involved in cryptocurrency transactions, emphasizing that only banks and authorized financial institutions should process transactions for Binance.

Judge Nwite has adjourned the case until October, allowing for further deliberation and review of evidence. This will provide both the defense and prosecution additional time to prepare their cases.

The Nigerian government continues to scrutinize cryptocurrency activities, aligning with the National Security Adviser’s stance that such trading poses a national security risk.