Binance Challenges Document Service
A Nigerian court has adjourned its tax evasion case against crypto exchange Binance to April 30, allowing the Federal Inland Revenue Service (FIRS) time to respond to legal challenges raised by Binance.
On April 7, Binance’s lawyer, Chukwuka Ikwuazom, argued in court that a February 11 order allowing court documents to be served to Binance via email was improper. He claimed Binance has no office in Nigeria and that FIRS didn’t obtain the necessary court permission to serve documents outside Nigerian jurisdiction.
“The order for substituted service on Binance, registered in the Cayman Islands, is improper and should be set aside,” Ikwuazom stated.
FIRS Seeks Billions in Taxes and Damages
FIRS originally filed the lawsuit in February, alleging Binance owed $2 billion in taxes and demanding $79.5 billion in damages, accusing the exchange of contributing to currency instability. FIRS claims Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax for 2022 and 2023, plus penalties and interest.
Previous Legal Battles with Executives
Binance has previously faced legal action in Nigeria. In early 2024, executives Tigran Gambaryan and Nadeem Anjarwalla were arrested over tax fraud and money laundering. Charges were dropped later in the year, though Anjarwalla escaped custody and remains at large.
Gambaryan, a U.S. citizen, returned home in October after reportedly suffering from multiple health issues during detention.
Binance’s Exit from the Nigerian Market
In March 2024, Binance suspended all naira deposits and withdrawals, marking its exit from the Nigerian market amid escalating legal and regulatory pressure.
The next hearing in the tax case is scheduled for April 30.
