Court has postponed proceedings in a tax evasion case against global cryptocurrency exchange Binance until April 30 to allow the country’s tax authority time to respond to a motion challenging the validity of court documents served via email.
The move follows an application by Binance’s legal representative, Chukwuka Ikwuazom, who asked the court to nullify a previous order permitting substituted service by electronic means. According to Ikwuazom, the Federal Inland Revenue Service failed to obtain the court’s permission to serve legal documents outside Nigeria — a necessary step since Binance, registered in the Cayman Islands, has no physical presence in the country.
“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 told the court.
Nigeria has filed a lawsuit seeking to compel Binance to pay a staggering $79.5 billion in damages for alleged economic losses linked to its operations in the country, along with $2 billion in unpaid taxes.
The case marks a significant escalation in the government’s broader crackdown on cryptocurrency platforms, which authorities blame for contributing to the naira’s ongoing instability.
In 2024, two Binance executives were detained in connection with the investigation, as crypto trading websites became key channels for exchanging the local currency.
While Binance has not commented on the latest court proceedings, the company previously stated that it was cooperating with the FIRS to address any potential historic tax obligations.
Court documents indicate that the FIRS contends Binance has maintained a “significant economic presence” in Nigeria, making it liable for corporate income tax. The agency is seeking a declaration compelling Binance to pay taxes for 2022 and 2023, in addition to a 10% annual penalty on any unpaid amounts.
