Binance tax evasion trial set for October

A Nigerian court has set a date of October 11 for the tax fraud case against crypto exchange Binance.

Local media reports that Binance's lawyer, Ayodele Omotilewa, appeared in court on Friday, July 12 and pleaded not guilty to all four charges before Justice Emeka Nwite.

The case was adjourned until October

Omotilewa urged the judge to dismiss the suit, saying it lacked substance, a move that had previously been dismissed against Binance executives Tigran Gambian and Nadeem Anjarwala.

In June, a Federal High Court in Abuja charged Gambria and Anjarwala with tax evasion. Gambarian, a US citizen, and Anjarwala, a British national who fled to Kenya, are still facing separate money laundering charges.

The court's ruling effectively dismissed the tax evasion allegations leveled against the two executives following the filing of an amended charge sheet by the FIRS. This change comes after Binance appointed Omotilewan to oversee its local operations.

Judge Newt decided to adjourn the case until October to allow further arguments and evidence to be presented. This gives the defense and prosecution more time to prepare their case.

Case background

In February, Nigerian officials arrested Anjarwala and the Gambian during a visit to Nigeria. They were held hostage for several weeks on charges of tax evasion and money laundering.

Related: US lawmakers ask Congress to hold Binance exec in Nigeria ‘hostage'

Although Binance did not comment on the latest developments, it previously said that the charges should be dismissed. But Nigeria has outsourced its exchange affairs to Binance and cryptocurrency platforms have become the preferred method of trading the Nigerian Naira amid a severe dollar shortage and low value of the fiat currency.

The crackdown on cryptocurrency activities is consistent with the National Security Adviser's position that cryptocurrency trading poses a national security risk. As part of this effort, the Central Bank of Nigeria (CBN) has directed fintech companies to identify and report accounts involved in cryptocurrency transactions and take appropriate action to prevent further activities.

The CBN's head of payments policy and regulation argued in court on July 6 that only banks and authorized financial institutions can handle deposits and withdrawals for Binance as part of ongoing litigation.

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