A Nigerian court has pushed back the tax evasion lawsuit against global crypto trading exchange Binance to April 30, giving the Federal Inland Revenue Service (FIRS) extra time to address a legal objection by Binance.
The case resumed in the first week of April, marking the scheduled hearing. The hearing could not go ahead as Binance’s lawyer, Chukwuka Ikwuazom, challenged the validity of the court’s earlier order for the email delivery of court processes. The lawyer argued that cross-border legal processes wouldn’t be valid unless there was an order for it. However, that authorization wasn’t in place, as highlighted by the lawyer.
In February, the FIRS initiated the case that involved the exchange of approximately $2 billion in taxes. They are also seeking damages of ₦79.5 billion (approximately $53 million) as it destabilizes the economy and the naira.
According to FIRS, the considerable number of users Binance has in Nigeria and the transactions that happen in Nigeria give it have a consequential economic presence, and therefore, the company is liable to pay corporate taxes for 2022 and 2023. The agency is also demanding 37% annual compound interest in unpaid amounts, along with a penalty.
This is not Binance’s first legal battle in Nigeria. Early in 2024, Binance arrested two high-ranking executives, Tigran Gambaryan and Nadeem Anjarwalla, for tax evasion and money laundering. Although the case was dismissed, Anjarwalla escaped from custody and has not been seen since, while Gambaryan returned to the US after suffering serious health challenges in detention.
In March 2024, Binance suspended all naira transactions following intense pressure, effectively ceasing operations in Nigeria.
The court has set a new date of April 30 for the case between Binance and the Nigerian authorities. As the case develops, it highlights how hard it is for governments to deal with the influence of emerging market digital currencies.
