Binance seeks out-of-court settlement in Nigeria tax evasion case

Binance Holdings Limited on Tuesday said it is exploring a resolution of the tax evasion charges filed against it by the Federal Government, signalling a pause in the trial.

Sunday Agaji, the company’s counsel disclosed this before Emeka Nwite of the Federal High Court in Abuja.

Moses Ideho, counsel to the government a deputy director in the legal department of the Federal Inland Revenue Service (now Nigeria Revenue Service), confirmed the development.

Although the matter was slated for continuation of trial, Ideho told the court he had been informed earlier by the defence that the company had approached the tax authority to discuss an out-of-court settlement.

Agaji said discussions were ongoing. “My lord, parties are exploring settlement. That is essentially where we are,” he said.

Following submissions from both parties, Justice Nwite adjourned the case until May 12 for a report on settlement talks.

The case, in which the fourth prosecution witness testified at the last adjourned date, stems from a four-count charge on tax evasion.

Binance was re-arraigned on July 12, 2024, with its Nigerian representative, Ayodele Omotilewa, entering a not guilty plea on behalf of the company.

The re-arraignment followed the discharge of two executives of the firm, Tigran Gambaryan and Nadeem Anjarwalla, after the prosecution amended the charge to list Binance as the sole defendant.

In a ruling delivered on June 14, 2024, Justice Nwite struck out their names after the amended charge was filed.

Separately, the Economic and Financial Crimes Commission is prosecuting Binance over alleged money laundering before the same court, involving $35.4 million.

The company is also facing a civil suit before another Federal High Court judge, Mohammed Umar, where the tax authority is seeking about $79.5 billion in losses linked to its operations in Nigeria. (BusinessDay)