Tax Turmoil: Binance Wins Delay in Nigerian Court Over Document Dispute
A Nigerian court has delayed proceedings in the high-profile tax evasion case against Binance until April 30, 2025, giving the Federal Inland Revenue Service (FIRS) time to respond to a key legal request from the crypto exchange.
The pause in legal action follows a motion by Binance’s legal counsel, who argued that court documents were improperly served via email—a method the company says violates international service procedures since Binance is registered and headquartered in the Cayman Islands with no physical office in Nigeria.
FIRS Demands Billions Over Alleged Economic Damage
The FIRS is suing Binance for over $2 billion in unpaid taxes, along with an additional $79.5 billion in damages.
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Nigerian authorities allege that Binance’s operations contributed to destabilizing the national currency, the naira—claims that Binance firmly denies. This situation is much like blaming a tidal wave on a foreign ship passing by: while both exist in the same ocean, proving direct causality is complex and contentious.
Officials argue that Binance, despite lacking a physical presence, has a “significant economic footprint” in Nigeria and therefore should be held liable for corporate income taxes for 2022 and 2023. They’re also demanding penalties that include a 10% annual surcharge on overdue amounts and interest of nearly 27%.
Binance Disputes Legality of Nigerian Court Email Document Service
Binance’s lawyer, Chukwuka Ikwuazom, challenged the legitimacy of the Nigerian court’s prior order allowing legal documents to be served by email, asserting that the FIRS failed to obtain proper authorization to serve an entity based outside Nigerian jurisdiction.
Ikwuazom has requested that the Nigerian court overturn the order, labeling the service method “improper.”
Legal Turbulence and a Shrinking Presence
This Nigerian courtroom saga is unfolding against a turbulent backdrop for Binance in Nigeria.
In early 2024, company executives Tigran Gambaryan and Nadeem Anjarwalla were arrested on allegations of tax fraud and money laundering. While the tax-related charges were dropped by mid-2024, legal woes persisted.
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Gambaryan was released in October after health complications during detention, while Anjarwalla escaped custody and fled to Kenya.
In March 2024, Binance pulled out of the Nigerian market by halting naira transactions, effectively exiting the space and weakening its position in ongoing legal proceedings.
This case is just one of many global regulatory hurdles Binance is navigating. Much like a ship sailing through stormy waters, each legal challenge tests the company’s ability to stay afloat in an increasingly regulated crypto environment. The April 30 hearing will be a key waypoint, as both sides prepare for what could be a prolonged legal voyage.
