The Federal High Court in Abuja has further adjourned the alleged tax evasion case filed by the federal government against Binance Holdings Ltd until September 24 for a report of settlement. Justice Emeka Nwite postponed the matter after the prosecution lawyer, Moses Ideho, informed the court that the parties were still exploring reconciliation.
Background of the Case
According to the News Agency of Nigeria (NAN), Justice Nwite had on May 12 fixed Thursday for the report of settlement. The judge set that date after both the prosecution and Binance’s defense lawyers indicated that the parties were discussing an out-of-court settlement. On March 24, the cryptocurrency company had sought an amicable resolution of the matter.
Prosecution's Statement
When the case was called, Ideho, a Deputy Director of Legal and Prosecution from the Federal Inland Revenue Service (now Nigeria Revenue Service), said the matter was scheduled for a report of settlement or continuation of trial. However, he explained that the case could not proceed for two reasons. “One is the elevation news of my lord to the appeal court. We have been praying for it and we are grateful that it has come to pass,” he said. The second reason, according to Ideho, was that “parties were still exploring settlement in the charge that led to this case.”
Defense's Position
Binance’s lawyer, Sunday Agaji, did not oppose the application. Consequently, Justice Nwite adjourned the matter until September 24 for a report of settlement or continuation of trial.
Re-arraignment and Plea
On July 12, 2024, the prosecution re-arraigned Binance Holdings Limited on four charges of tax evasion. The Nigerian representative of Binance, Ayodele Omotilewa, who was docked, pleaded not guilty on behalf of the company before Justice Nwite. The re-arraignment followed the discharge of the cryptocurrency firm’s executive, Tigran Gambaryan, and his fleeing colleague, Nadeem Anjarwalla, from the alleged offence.
Discharge of Executives
Justice Nwite, in a ruling on June 14, 2024, discharged and struck out Gambaryan and Anjarwalla’s names from the charge after Ideho filed an amended charge wherein Binance is listed as sole defendant. The amended charge was dated June 13, 2024, but filed on June 14, 2024.
Other Legal Challenges
NAN reports that the Economic and Financial Crimes Commission (EFCC) is also prosecuting the cryptocurrency company on allegations bordering on money laundering offences before the same judge. The anti-graft agency accused Binance of money laundering to the tune of $35.4 million. Additionally, Binance is facing another civil suit before Justice Mohammed Umar of the Federal High Court, where the FIRS is praying for $79.5 billion over economic losses allegedly caused by the company’s operations in Nigeria.
