A court in Nigeria has allegedly postponed the nation’s tax evasion lawsuit against Binance until April 30, providing time for Nigeria’s tax agency to address a request from the cryptocurrency exchange.
According to Reuters on April 7, a legal representative of Binance, Chukwuka Ikwuazom, sought on the same day for a court to annul an order permitting court documents to be delivered to the company via email.
Since Binance lacks an office in Nigeria, Ikwuazom asserted that the Federal Inland Revenue Service (FIRS) did not obtain judicial approval to serve documents to Binance abroad.
“Overall, the directive for the substituted service as granted by the court on February 11, 2025, regarding Binance, which is … registered under the laws of Cayman Islands and situated in Cayman Islands, is inappropriate and ought to be annulled,” he remarked.
The FIRS initiated legal action against Binance in February, asserting that the exchange owes $2 billion in unpaid taxes and should compensate $79.5 billion for harm to the local economy, alleging its operations have destabilized the nation’s currency, the naira, an accusation Binance refutes.
The agency also reportedly contended that Binance is obligated to pay corporate income tax in Nigeria, citing a “significant economic presence” in the country, with FIRS requesting a judicial ruling for the exchange to remit income taxes for 2022 and 2023, alongside a 10% annual penalty on overdue amounts and nearly a 27% interest rate on the unpaid taxes.
Nigeria’s judicial history with Binance
In February 2024, Nigerian authorities arrested and detained Binance executives Tigran Gambaryan and Nadeem Anjarwalla on allegations of tax fraud and money laundering. The nation dismissed the tax allegations against both individuals in June and the remaining charge against Gambaryan in October.
Tigran Gambaryan (right) was captured in a September video struggling to enter a courtroom in Abuja, Nigeria. Source: X
Anjarwalla managed to evade his guards and escaped from detention in Nigeria, fleeing to Kenya in March of the previous year and is believed to still be at large.
Related: Binance exec provides details about release from Nigerian custody
Gambaryan, who is a citizen of the U.S., returned to his home country in October after reports indicated his health had worsened during his imprisonment due to pneumonia, malaria, and a herniated spinal disc that might require surgical intervention.
Binance ceased its naira currency transactions in March 2024, effectively withdrawing from the Nigerian market.
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