On Monday, Bitcoin regained lost ground after reaching an all-time high of $74,000 earlier this month, surging by more than 4.5% to above $70,000.
Binance, the biggest cryptocurrency exchange in the world, has been hit with four counts of tax evasion by the Nigerian government, adding fuel to the fire in their ongoing feud. Premium Times reports that the charges were filed at a Federal High Court in Abuja, the capital of the country, by the Federal Inland Revenue Service (FIRS) on March 22. On the same day, Nadeem Anjarwalla, one of the Binance executives detained since February, escaped from the EFCC’s custody.
Charges of Tax Evasion Leveled Against Binance
In their case against Binance, the FIRS named Anjarwalla and Tigran Gambaryan as defendants number two and three, respectively. After Anjarwalla escaped, the other executive who is still in captivity is Gambaryan. The company was sued for allegedly enabling its users to avoid paying value-added taxes (VATs) on cryptocurrency trades conducted on its platform and for failing to withhold VATs from those transactions.
The cryptocurrency exchange also allegedly did not pay all applicable taxes since it did not register with the FIRS. To further guarantee proper tax payments, the portal did not issue VAT tax bills to users.
The Nigerian government is investigating Binance on suspicion of money laundering and terrorism funding, which is why the exchange is under scrutiny. The cryptocurrency exchange was ordered last week by the Federal High Court to disclose detailed information about all local customers who have traded on their platform, as well as details about all transactions that have taken place on the site during the previous six months.
If you remember back to February, the naira’s enormous devaluation against other currencies was the spark that ignited this whole thing. Since Binance’s platform allowed for market manipulation and currency speculation, Nigeria blames the company heavily for the FX crisis.
An Executive from Binance Evades the EFCC
The EFCC was taken aback by Anjarwalla’s flight; the Nigerian authorities have confiscated his travel documents, which they are currently holding.
According to those in the know, the Binance executive was able to leave the nation after being led by security personnel from the guest home where he had been imprisoned to a nearby mosque where he could pray during the current Ramadan fast. It is thought that he departed from Abuja on a Middle Eastern plane bearing a Kenyan passport. His Kenyan citizenship was confirmed by the authorities.
The court has granted a further two weeks of imprisonment to the Binance officials, following the initial fourteen days after their arrest on February 26, as investigations continue to determine Anjarwalla’s whereabouts.
The Securities and Exchange Commission of the Philippines has just declared its intention to restrict Binance’s website, citing concerns over the safety of Filipino investors. After a multi-day upswing, Bitcoin’s price remained below $65,000 until last Thursday.
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