A Nigerian court has postponed the trial of Binance and its executives in a tax evasion case until April 30, 2025. The
delay follows a request from the cryptocurrency exchange’s legal team to reconsider a ruling that allowed court
documents to be served via email.
Binance’s lawyer, Chukwuka Ikwuazom, argued that this method of service was inappropriate since the tax authority
did not obtain permission from the court to serve documents outside Nigeria. Binance, which does not have a
physical office in the country, is registered in the Cayman Islands, making the service of documents abroad a
contentious issue.
This legal battle stems from Nigeria’s pursuit of Binance, the world’s largest cryptocurrency exchange, for alleged tax
evasion. The Nigerian government is demanding that Binance pay a staggering $79.5 billion in damages related to
economic losses it claims were caused by the company’s operations in the country. Additionally, the Federal Inland Revenue Service (FIRS) is seeking to recover $2 billion in back taxes, which they argue are owed for the years 2022 and 2023.
The court ruling in question, issued on February 11, 2025, allowed the FIRS to send court documents by email to
Binance. However, Binance’s legal team contends that this decision was improper, as the Nigerian court did not
authorize such a procedure for international service.
You may also like: House Lawmaker Denies Binance Executive’s $150 Million Bribery Allegations
The company’s lawyer emphasized that such a significant legal move should have been approved by the court
beforehand, especially given that Binance operates outside Nigerian jurisdiction.
Binance has not yet responded to the court’s decision, but the company has expressed its commitment to resolving
its tax liabilities in Nigeria. In previous statements, Binance indicated that it was cooperating with the Nigerian tax
authorities to settle potential tax obligations, even though it does not have a physical presence in the country.
The ongoing legal dispute is closely watched by those in the cryptocurrency sector, as it could set a significant
precedent for how global crypto companies interact with national tax systems.
The Nigerian authorities have accused Binance of contributing to the instability of the Nigerian naira by facilitating
crypto trading in a country struggling with currency depreciation. The authorities’ actions are also seen as a response
to the growing role of cryptocurrency in the country’s financial ecosystem. Binance’s services were allegedly used for
trading the naira, further complicating the legal and regulatory landscape surrounding the exchange.
In response to the allegations, Binance has reiterated that it operates in full compliance with the laws of every country
in which it conducts business, although it maintains that it is not subject to Nigerian regulations due to its status as
an international entity. The court’s decision to adjourn the case provides Binance additional time to prepare its
defense, as the tax authorities are expected to file a response by the new hearing date.
