The Federal High Court in Abuja, Nigeria has postponed the hearing of Nigeria’s tax evasion case against Binance to April 30 2025.
According to Reuters, the cryptocurrency exchange has asked the court to annul an earlier order for court documents to be delivered to them by email.
Binance’s lawyer, Chukwuka Ikwuazom, asked the court to nullify the order permitting the ‘service’ of legal documents via email. He argued that Nigeria’s tax authority, the FIRS, failed to get the court’s permission (or ‘leave’) to serve legal papers outside the country – a necessary step since Binance does not have a physical office in Nigeria.
Binance, which is incorporated in the Cayman Islands, has argued that Nigeria’s Federal Inland Revenue Service (FIRS) lacked the necessary legal authorization to serve court documents beyond the country’s borders.
The exchange also noted it does not maintain a physical office in Nigeria, further complicating the matter.
“On the whole, the order for the substituted service as granted by the court on February 11 2025 on Binance who is … registered under the laws of Cayman Islands and resident in Cayman Islands is improper and should be set aside,” Ikwuazom said.
The Nigerian government is seeking $2 billion in back taxes and an additional $79.5 billion in damages from Binance, accusing the crypto exchange of causing major economic disruption.
REGULATION | Nigeria Sues #Binance for $81.5 Billion in Economic Losses and Unpaid Taxes
The Federal Inland Revenue Service (FIRS) claims that Binance has a ‘significant economic presence’ in Nigeria.https://t.co/1VQGMEuClQ @FIRSNigeria @binance @BinanceAfrica pic.twitter.com/VaSjVCjnlu
— BitKE (@BitcoinKE) February 20, 2025
Officials have blamed the exchange for Nigeria’s currency challenges, a claim refuted by CEO, Richard Teng.
“Binance’s P2P team engaged with the local community. What we learned was that due to the lack of official reference FX prices in Nigeria, people in Nigeria, including crypto… pic.twitter.com/OKCet9DCbj
— BitKE (@BitcoinKE) May 8, 2024
In 2024, compliance officer, Tigran Gambaryan, and then Binance Africa lead, Nadeem Anjarwalla, were detained amid a crackdown on crypto platforms which had become preferred channels for trading the local Naira.
Delivering the ruling, Judge Emeka Nwite said several factors including the nature of offense and its severity must be considered when trying to decide whether or not bail should be granted to the… pic.twitter.com/Q7MZxDJ4kY
— BitKE (@BitcoinKE) May 18, 2024
The Federal Inland Revenue Service (FIRS) claims that Binance has a ‘significant economic presence’ in Nigeria, making it liable for corporate income tax. It is seeking a court ruling requiring Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on outstanding amounts.
Binance is accused of providing services – including crypto trading, remittance, and asset transfers – to Nigerians without deducting the required VAThttps://t.co/CcqN9558U7 @FIRSNigeria pic.twitter.com/CUuBuZtE9x
— BitKE (@BitcoinKE) February 21, 2025
FIRS is also claiming a 26.75% interest rate on the unpaid taxes, based on the Central Bank of Nigeria’s lending rate.
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