Binance’s Tax Evasion Case Delayed Until April 30, FIRS Seeks $81.5 Billion

A Nigerian court has delayed the hearing of Binance’s tax evasion case until April 30, providing the country’s tax agency, the Federal Inland Revenue Service (FIRS), additional time to respond to the exchange’s legal filings. The FIRS is seeking $2 billion in unpaid taxes and $79.5 billion in damages, asserting that Binance’s operations in Nigeria have caused economic harm. The agency contends that Binance has a “significant economic presence” in the country and should have paid corporate taxes for 2022 and 2023, along with a 10% yearly penalty on overdue amounts.

The delay in the court case stems from Binance’s argument that it was not properly notified of the legal proceedings. Since Binance is headquartered in the Cayman Islands and does not have a physical presence in Nigeria, its legal team argued that the tax authority needed special permission to serve legal documents via email. The court has granted the postponement to allow the FIRS to formally address Binance’s challenge regarding the use of email for legal notifications.

Nigeria has been intensifying its crackdown on cryptocurrency platforms, accusing them of disrupting the country’s currency market. In 2024, two Binance executives were detained as part of an investigation into naira-based crypto trades. Authorities allege that Binance and similar platforms have negatively impacted official exchange rates and facilitated the outflow of money from the country. In early 2024, the Central Bank claimed that $26 billion in unknown user transactions went through Binance. Authorities demanded data on Binance’s top 100 users and their activity over a six-month period. In response, Binance suspended its peer-to-peer (P2P) trading in Nigeria on February 20, citing system abuse and significant currency fluctuations. The government also blocked access to Binance’s website.

The upcoming court hearing on April 30 will address Binance’s legal pushback in its tax case. This escalating conflict underscores the tension between the rapid innovation of cryptocurrency and stringent financial regulations in countries like Nigeria. Despite not being licensed in Nigeria, many locals continue to use Binance for trading digital assets and stablecoins.