Nigerian Court Grants Delay in Binance Tax Evasion Lawsuit
The legal challenge is centered around the improper service of documents. The case is part of the broader crackdown that led to executive arrests and Binance's March 2024 exit from Nigeria. Meanwhile, Australia’s securities regulator ASIC shut down 95 companies involved in crypto “pig butchering” scams, and exposed more than $35 million in global losses. In Spain, authorities shut down a $20 million AI-driven crypto scam that used deepfake ads and fake personas to defraud over 200 victims.
Nigerian Court Delays Binance Tax Case
A Nigerian court postponed its high-profile tax evasion case against Binance until April 30, giving the Federal Inland Revenue Service (FIRS) more time to respond to a request from the crypto exchange. The delay happened after a legal challenge by Binance’s lawyer, Chukwuka Ikwuazom, who argued in court on April 7 that the order allowing court documents to be served to Binance via email should be voided. According to Ikwuazom, since Binance does not have a registered office in Nigeria and is domiciled in the Cayman Islands, the FIRS did not have proper court authorization to serve documents outside of the country.
Binance is facing a $2 billion tax claim from the FIRS, which also seeks $79.5 billion in damages for alleged harm to Nigeria’s economy. Authorities accused the exchange of contributing to the instability of the national currency, the naira, which is a claim Binance strongly rejected.
FIRS also believes that Binance has a “significant economic presence” in Nigeria and is liable for corporate income taxes for 2022 and 2023. The agency is demanding back taxes along with penalties of 10% annually on unpaid amounts and nearly 27% in interest.
The tax battle started after a broader crackdown on Binance’s operations in Nigeria, which intensified in early 2024 with the arrests of executives Tigran Gambaryan and Nadeem Anjarwalla on charges of tax fraud and money laundering. Although tax charges were dropped against both men in June, other charges against Gambaryan were only dismissed in October.
Anjarwalla escaped custody and fled to Kenya, where he is still at large. Gambaryan, a US citizen, returned home after suffering serious health issues during detention, including pneumonia, malaria, and a herniated spinal disc. Binance exited the Nigerian market in March of 2024 by halting naira deposits and withdrawals.
Australia Targets Pig Butchering Scam Rings
Legal battles with the crypto sector are also being fought in other parts of the world. Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), received court approval to shut down 95 companies suspected of operating crypto investment and romance scams known as “pig butchering.”
Statement (Source: ASIC)
A crypto pig butchering scam is a type of long-term investment scam where fraudsters build fake relationships with victims online to gain their trust. Once the target is emotionally invested, the scammer slowly ”fattens them up” (like fattening a pig for slaughter) by encouraging them to invest in what appears to be a legitimate cryptocurrency platform.
These platforms are actually controlled by the scammers. At first, the victim may even see fake profits to build confidence. Eventually, the scammer steals all the funds, and when the victim tries to withdraw, they either get blocked or are asked to pay fake fees or taxes.
The Federal Court of Australia granted ASIC’s request on just and equitable grounds, after the watchdog discovered that most of the companies were registered using false information and were likely established to deceive victims under the guise of providing legitimate services.
Judge Angus Stewart, who presided over the case, noticed a pattern of “pig butchering” behavior across the companies, and referred to findings from 48 misconduct reviews involving 17 of the firms. ASIC believes a big portion of this scam activity originates from Southeast Asia.
Catherine Conneely and Thomas Birch of Cor Cordis have been appointed as joint liquidators of the companies. Provisional liquidators already received close to 1,500 claims from victims across 14 countries, totaling more than $35.8 million. These countries include Australia, the United States, Cameroon, Ghana, India, Nepal, the Philippines, and France. Only three of the 95 companies had any assets, which led liquidators to recommend the immediate winding up and deregistration of the remaining 92 firms.
ASIC also ramped up its efforts to dismantle online scam operations, and even remove around 130 scam websites each week. These include more than 7,200 fake investment platform scams and over 1,500 phishing scams. Despite these efforts, ASIC Deputy Chair Sarah Court compared the scams to hydras—shut down one, and more emerge—and also warned consumers that the risk of scams and identity fraud remains high.
On the bright side, Australia’s National Anti-Scam Centre recently reported a 26% drop in scam losses to $2 billion in 2024. This was accompanied by a 17.8% decrease in scam reports to 494,732.
Fraud Ring Exposed in Spain
In Spain, authorities arrested six people linked to a sophisticated global investment scam that used artificial intelligence to steal more than $20 million from at least 208 victims. According to a statement from Spanish police on April 7, the scammers defrauded their victims in multiple stages by using deepfake ads featuring well-known national figures to lure people into high-return cryptocurrency investments that were entirely fraudulent.
Once victims invested and realized that they couldn’t withdraw their funds, the scammers launched follow-up cons, contacting them again while posing as investment managers. They claimed the victims’ funds were frozen and could be recovered for a fee, which many paid in hopes of retrieving their lost money. A third wave of deception followed, with scammers pretending to be Europol agents or UK-based lawyers, offering to return the stolen assets in exchange for supposed taxes owed in the countries where the funds were allegedly blocked.
Spanish police said the scammers used AI algorithms to target specific people whose online profiles matched criteria that were set by the fraudsters. They then placed ads across websites and social media promising zero-risk crypto investments. The group is also accused of impersonating financial advisers and even fabricating romantic connections to build trust with the victims.
The arrested individuals now face charges of fraud, money laundering, and falsifying documents as part of a criminal organization. During a raid on the home of the suspected ringleader, authorities seized a number of electronic devices, a simulated weapon, and extensive documentation. It is also believed that the group used dozens of fake companies to move the stolen funds and relied on false identities to evade detection. One member even allegedly used more than 50 different identities. Investigations are ongoing, and additional suspects were identified in other countries.
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Nigerian Court Grants Delay in Binance Tax Evasion Lawsuit
The legal challenge is centered around the improper service of documents. The case is part of the broader crackdown that led to executive arrests and Binance's March 2024 exit from Nigeria. Meanwhile, Australia’s securities regulator ASIC shut down 95 companies involved in crypto “pig butchering” scams, and exposed more than $35 million in global losses. In Spain, authorities shut down a $20 million AI-driven crypto scam that used deepfake ads and fake personas to defraud over 200 victims.
Nigerian Court Delays Binance Tax Case
A Nigerian court postponed its high-profile tax evasion case against Binance until April 30, giving the Federal Inland Revenue Service (FIRS) more time to respond to a request from the crypto exchange. The delay happened after a legal challenge by Binance’s lawyer, Chukwuka Ikwuazom, who argued in court on April 7 that the order allowing court documents to be served to Binance via email should be voided. According to Ikwuazom, since Binance does not have a registered office in Nigeria and is domiciled in the Cayman Islands, the FIRS did not have proper court authorization to serve documents outside of the country.
Binance is facing a $2 billion tax claim from the FIRS, which also seeks $79.5 billion in damages for alleged harm to Nigeria’s economy. Authorities accused the exchange of contributing to the instability of the national currency, the naira, which is a claim Binance strongly rejected.
FIRS also believes that Binance has a “significant economic presence” in Nigeria and is liable for corporate income taxes for 2022 and 2023. The agency is demanding back taxes along with penalties of 10% annually on unpaid amounts and nearly 27% in interest.
The tax battle started after a broader crackdown on Binance’s operations in Nigeria, which intensified in early 2024 with the arrests of executives Tigran Gambaryan and Nadeem Anjarwalla on charges of tax fraud and money laundering. Although tax charges were dropped against both men in June, other charges against Gambaryan were only dismissed in October.
Anjarwalla escaped custody and fled to Kenya, where he is still at large. Gambaryan, a US citizen, returned home after suffering serious health issues during detention, including pneumonia, malaria, and a herniated spinal disc. Binance exited the Nigerian market in March of 2024 by halting naira deposits and withdrawals.
Australia Targets Pig Butchering Scam Rings
Legal battles with the crypto sector are also being fought in other parts of the world. Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), received court approval to shut down 95 companies suspected of operating crypto investment and romance scams known as “pig butchering.”
Statement (Source: ASIC)
A crypto pig butchering scam is a type of long-term investment scam where fraudsters build fake relationships with victims online to gain their trust. Once the target is emotionally invested, the scammer slowly ”fattens them up” (like fattening a pig for slaughter) by encouraging them to invest in what appears to be a legitimate cryptocurrency platform.
These platforms are actually controlled by the scammers. At first, the victim may even see fake profits to build confidence. Eventually, the scammer steals all the funds, and when the victim tries to withdraw, they either get blocked or are asked to pay fake fees or taxes.
The Federal Court of Australia granted ASIC’s request on just and equitable grounds, after the watchdog discovered that most of the companies were registered using false information and were likely established to deceive victims under the guise of providing legitimate services.
Judge Angus Stewart, who presided over the case, noticed a pattern of “pig butchering” behavior across the companies, and referred to findings from 48 misconduct reviews involving 17 of the firms. ASIC believes a big portion of this scam activity originates from Southeast Asia.
Catherine Conneely and Thomas Birch of Cor Cordis have been appointed as joint liquidators of the companies. Provisional liquidators already received close to 1,500 claims from victims across 14 countries, totaling more than $35.8 million. These countries include Australia, the United States, Cameroon, Ghana, India, Nepal, the Philippines, and France. Only three of the 95 companies had any assets, which led liquidators to recommend the immediate winding up and deregistration of the remaining 92 firms.
ASIC also ramped up its efforts to dismantle online scam operations, and even remove around 130 scam websites each week. These include more than 7,200 fake investment platform scams and over 1,500 phishing scams. Despite these efforts, ASIC Deputy Chair Sarah Court compared the scams to hydras—shut down one, and more emerge—and also warned consumers that the risk of scams and identity fraud remains high.
On the bright side, Australia’s National Anti-Scam Centre recently reported a 26% drop in scam losses to $2 billion in 2024. This was accompanied by a 17.8% decrease in scam reports to 494,732.
Fraud Ring Exposed in Spain
In Spain, authorities arrested six people linked to a sophisticated global investment scam that used artificial intelligence to steal more than $20 million from at least 208 victims. According to a statement from Spanish police on April 7, the scammers defrauded their victims in multiple stages by using deepfake ads featuring well-known national figures to lure people into high-return cryptocurrency investments that were entirely fraudulent.
Once victims invested and realized that they couldn’t withdraw their funds, the scammers launched follow-up cons, contacting them again while posing as investment managers. They claimed the victims’ funds were frozen and could be recovered for a fee, which many paid in hopes of retrieving their lost money. A third wave of deception followed, with scammers pretending to be Europol agents or UK-based lawyers, offering to return the stolen assets in exchange for supposed taxes owed in the countries where the funds were allegedly blocked.
Spanish police said the scammers used AI algorithms to target specific people whose online profiles matched criteria that were set by the fraudsters. They then placed ads across websites and social media promising zero-risk crypto investments. The group is also accused of impersonating financial advisers and even fabricating romantic connections to build trust with the victims.
The arrested individuals now face charges of fraud, money laundering, and falsifying documents as part of a criminal organization. During a raid on the home of the suspected ringleader, authorities seized a number of electronic devices, a simulated weapon, and extensive documentation. It is also believed that the group used dozens of fake companies to move the stolen funds and relied on false identities to evade detection. One member even allegedly used more than 50 different identities. Investigations are ongoing, and additional suspects were identified in other countries.
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