Binance has initiated discussions with the Nigerian government in an effort to resolve an ongoing tax evasion case outside the courtroom, signaling a possible shift in the high-profile legal dispute.
Settlement Discussions Confirmed in Court
The development was disclosed during proceedings at the Federal High Court in Abuja, where both parties confirmed that negotiations are underway. Counsel to Binance, Sunday Agaji, informed the court that efforts are being made to reach a mutually agreeable settlement.
Representing the government, Moses Ideho, who serves as a Deputy Director in the legal department of the Federal Inland Revenue Service (now known as the Nigeria Revenue Service), also acknowledged that discussions had commenced. He noted that the defense had earlier approached the agency to explore the possibility of resolving the matter amicably.
Following submissions from both sides, presiding judge Emeka Nwite adjourned the case until May 12, when an update on the settlement process is expected to be presented.
Background of the Tax Evasion Charges
The case stems from charges filed against Binance in 2024, accusing the company of tax-related violations. The firm was re-arraigned on July 12, 2024, facing a four-count charge. During the proceedings, its Nigerian representative, Ayodele Omotilewa, entered a not guilty plea on behalf of the company.
The current legal framework of the case follows an earlier court decision that removed two individuals—Tigran Gambaryan and Nadeem Anjarwalla—from the charges. In June 2024, the court ruled to strike out their names after the prosecution amended the case to list Binance as the sole defendant.
Additional Legal Challenges Facing Binance
In addition to the tax allegations, Binance is also facing separate legal challenges in Nigeria. The Economic and Financial Crimes Commission has filed charges accusing the company of involvement in money laundering activities amounting to approximately $35.4 million.
Further compounding the situation, the company is involved in a civil lawsuit before another division of the Federal High Court. In that case, the tax authority is seeking damages estimated at $79.5 billion, citing economic losses allegedly linked to Binance’s operations within the country.
Implications for Nigeria’s Crypto Industry
The ongoing legal battles highlight increasing scrutiny of cryptocurrency platforms operating in Nigeria, as authorities aim to enforce compliance with financial regulations and tax obligations.
At the same time, Binance’s move to pursue settlement discussions suggests a willingness to resolve disputes and potentially ease tensions with regulators. The outcome of these talks could set a precedent for how crypto firms engage with governments in emerging markets.
