A Nigerian court has adjourned the high-profile tax evasion case against global cryptocurrency exchange, Binance, to April 30, 2025, to allow the Federal Inland Revenue Service (FIRS) to respond to a motion filed by Binance challenging the method of service.
Binance’s legal counsel, Chukwuka Ikwuazom, urged the court to annul its earlier order permitting court documents to be served on the crypto firm via email. Ikwuazom argued that since Binance is registered and domiciled in the Cayman Islands, the FIRS was required to seek the court’s leave to serve documents outside Nigeria.
“On the whole, the order for the substituted service granted on February 11, 2025, on Binance, which is registered and resident in the Cayman Islands, is improper and should be set aside,” Ikwuazom said.
The Nigerian government is pursuing a lawsuit demanding that Binance pay $79.5 billion in alleged economic damages, along with $2 billion in back taxes. The suit follows the government’s claims that Binance’s operations contributed significantly to currency instability in the country.
Authorities allege that Binance, despite lacking a physical presence in Nigeria, maintains a “significant economic presence” and should therefore be liable for corporate income tax. The FIRS is seeking court approval to compel Binance to pay income taxes for 2022 and 2023, with an additional 10% annual penalty on any unpaid amounts.
The case forms part of a broader crackdown on cryptocurrency platforms in Nigeria, where officials accuse exchanges of fueling the volatility of the naira. Two Binance executives were detained in 2024 as part of the government’s clampdown on crypto trading platforms.
Binance, which has not commented on the latest court development, previously stated that it is cooperating with the FIRS to resolve any potential historical tax obligations.
Comments