In a sudden turn of events, Nigeria's Federal Inland Revenue Service (FIRS) has decided to drop the tax evasion charges against Binance executives Tigran Gambaryan and Nadeem Anjarwalla. This move comes just one week after sixteen U.S. lawmakers accused Nigeria of holding Gambaryan hostage, according to a report from Nairametrics.

Gambaryan's Detention

Gambaryan has been held for 110 days, while Anjarwalla managed to escape detention on March 22. Despite the tax evasion charges being dropped, Gambaryan will remain in custody due to pending money laundering charges brought by the Economic and Financial Crimes Commission (EFCC). His lawyers have revealed that he has been diagnosed with malaria and pneumonia, raising concerns about his health and well-being.

Nigeria's Charges Against Binance

The tax invasion charges were initially filed against Gambaryan and Anjarwalla in March 2024 by the FIRS, alleging that they had failed to pay taxes on cryptocurrency transactions worth billions of naira. Binance was accused of not paying value-added tax, company tax, and failure to file tax returns.

Binance's Response

Binance has faced increasing regulatory scrutiny worldwide. Last year, the Commodity Futures Trading Commission (CFTC) filed charges against Binance for allegedly operating an illegal digital asset derivatives exchange and evading federal laws. Similarly, the US Securities and Exchange Commission charged Binance Holdings LTD and CZ for allegedly operating unregistered exchanges, broker exchanges, clearing houses, and the unregistered offer and sale of securities.

Nigeria's Crackdown on Cryptocurrency

The Nigerian government has been cracking down on cryptocurrency trading platforms, accusing them of influencing foreign exchange rates. The EFCC is separately prosecuting Binance and its executives over alleged money laundering and foreign exchange contravention. The detention of the Binance executives came after the Nigerian government banned cryptocurrency channels as part of a campaign against currency speculation.

Conclusion

The dropping of the tax evasion charges against Binance executives is a significant development in the ongoing conflict between Nigeria and Binance. While Gambaryan will remain in custody due to pending money laundering charges, the move could signal a shift in Nigeria's stance on cryptocurrency regulation.