A Nigerian court has postponed proceedings in a high-profile tax evasion case against crypto exchange Binance until April 30, giving the country’s tax authority more time to respond to the company’s legal objections.
According to a report from Reuters, Binance’s legal representative, Chukwuka Ikwuazom, argued in court that the Federal Inland Revenue Service (FIRS) improperly served court documents to the company via email. Binance, which has no physical presence in Nigeria, is registered in the Cayman Islands, and Ikwuazom said that the FIRS failed to seek proper court approval to serve legal papers to an overseas entity.
“The order for the substituted service as granted by the court on February 11, 2025, is improper and should be set aside,” Ikwuazom told the court, asserting that the method of service violated due process under international law.
The FIRS initially filed its lawsuit in February, claiming Binance owed $2 billion in back taxes and should be held accountable for $79.5 billion in damages, alleging the exchange’s operations distorted the naira and harmed the local economy. The agency further claims that Binance has a “significant economic presence” in Nigeria, which would make it liable for corporate income taxes for 2022 and 2023. It is also seeking penalties and interest totaling nearly 37% annually on unpaid tax liabilities.
The court’s delay comes amid a larger crackdown on cryptocurrency platforms in Nigeria. In March 2024, Binance ceased support for naira deposits and withdrawals, effectively exiting the Nigerian market.
The case also coincided with the detentions of Binance executives Tigran Gambaryan and Nadeem Anjarwalla, who were arrested in early 2024 on charges tied to tax fraud and money laundering. Charges against both were later dropped, and Gambaryan, a U.S. citizen, returned home in October following reports of serious health issues while in custody. Anjarwalla reportedly escaped custody in March and is still at large.
Authorities accused the world’s largest cryptocurrency exchange of fueling the country’s currency crisis, with government officials linking Binance’s operations to the volatility of the Nigerian naira.
The government claims Binance allowed its platform to be used for currency speculation, worsening the naira’s instability.
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