Binance's Tax Evasion Case Delayed Until April 30

A Nigerian court has delayed the tax evasion case against the cryptocurrency exchange Binance until April 30. This decision allows the Federal Inland Revenue Service (FIRS) additional time to address the legal challenges presented by Binance. The court adjournment comes after Binance's lawyer, Chukwuka Ikwuazom, argued that the method of serving court documents via email was improper. Ikwuazom contended that Binance does not have an office in Nigeria and that FIRS did not obtain the necessary court permission to serve documents outside Nigerian jurisdiction. He stated, “The order for substituted service on Binance, registered in the Cayman Islands, is improper and should be set aside.”

FIRS initially filed the lawsuit in February, alleging that Binance owed $2 billion in taxes and demanding $79.5 billion in damages. The revenue service accused the exchange of contributing to currency instability and claimed that Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax for 2022 and 2023, plus penalties and interest. This legal battle is part of a broader regulatory challenge faced by Binance in Nigeria, where the exchange has previously encountered legal issues. In early 2024, executives Tigran Gambaryan and Nadeem Anjarwalla were arrested over tax fraud and money laundering charges. Although the charges were later dropped, Anjarwalla escaped custody and remains at large. Gambaryan, a U.S. citizen, returned home in October after reportedly suffering from multiple health issues during his detention.

In March 2024, Binance suspended all naira deposits and withdrawals, effectively marking its exit from the Nigerian market. This move came amid escalating legal and regulatory pressure, which has significantly impacted the exchange's operations in the region. The next hearing in the tax case is scheduled for April 30, where further developments in this ongoing legal dispute are expected to unfold. The outcome of this case will have significant implications for Binance's future operations and its relationship with Nigerian regulatory authorities.