The Federal High Court in Abuja has adjourned the tax evasion case brought against cryptocurrency exchange Binance by the Federal Inland Revenue Service (FIRS) to April 30. This adjournment allows the FIRS time to respond to Binance’s request to annul a court order for documents to be served via email.
Binance’s legal representative, Chukwuka Ikwuazom, argued that the court order for substituted service, granted on February 11, 2025, was improper. He contended that the FIRS failed to obtain leave from the court to serve documents to Binance outside of Nigeria, given that the company is registered and based in the Cayman Islands and lacks a physical presence in Nigeria.
“On the whole, the order for the substituted service as granted by the court on February 11, 2025, on Binance, who is… registered under the laws of the Cayman Islands and resident in the Cayman Islands, is improper and should be set aside,” Ikwuazom stated.
The FIRS is pursuing a lawsuit seeking $79.5 billion in damages for alleged economic losses attributed to Binance’s operations in Nigeria, as well as $2 billion in back taxes. The agency has blamed Binance for contributing to the country’s currency instability and detained two of its executives in 2024. The FIRS argues that Binance has a “significant economic presence” in Nigeria, thus rendering it liable for corporate income tax, and is seeking a court declaration for Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on unpaid amounts.
Binance, which maintains it is not registered in Nigeria, has denied the charges. However, they have previously stated their willingness to cooperate with the FIRS to resolve potential historical tax liabilities. The court’s decision on April 30 will address the service of documents issue, a crucial step in proceeding with the substantive tax evasion case.
