- Binance is challenging a Nigerian court’s order to serve legal documents via email, citing its lack of a physical office in the country.
- The Nigerian government is seeking $81.5 billion from Binance for taxes and alleged economic damage, with a hearing now adjourned until April 30.
In a significant update for Binance, a Nigerian court has delayed the tax evasion case against the global cryptocurrency exchange, adjourning the hearing until April 30. This development comes after the court annulled an order that allowed legal documents to be served via email, citing Binance’s lack of a physical office in the country.
The exchange, which is registered in the Cayman Islands, has been at the center of a dispute with Nigeria’s Federal Inland Revenue Service (FIRS), which is seeking a staggering $81.5 billion from Binance. The amount includes $2 billion in back taxes and a further $79.5 billion for alleged economic damage caused by the platform’s operations.
Binance Challenges Legal Procedures
Binance’s legal team, led by Chukwuka Ikwuazom, argued that the court had not given proper approval for the FIRS to serve documents outside Nigeria. According to Ikwuazom, Binance’s absence of a physical office in Nigeria invalidated the order for substituted service via email, which the court had originally granted in February.
“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.
Nigeria’s $81.5 Billion Demand and Economic Impact
The Nigerian government is seeking $81.5 billion from BNB, including $2 billion in back taxes and $79.5 billion for alleged economic damages. The FIRS claims that Binance’s peer-to-peer platform facilitated unregulated trading that contributed to the depreciation of the Nigerian Naira, which has seen a significant loss in value against the US dollar since 2023. The financial instability has been exacerbated by inflation, which is approaching 30% in 2024.
Binance has been active in Nigeria since 2019, processing over $21.6 billion in transactions in 2023 alone. The FIRS argues that this substantial economic presence justifies its demand for taxes, penalties, and interest on unpaid dues.
What’s Next for Binance and Nigeria?
With the adjourned hearing date set for April 30, all eyes will be on the legal proceedings as they unfold. Binance’s battle with Nigerian authorities is far from over, and the outcome of this case could have significant implications for the broader cryptocurrency industry in the country.
