Michaela
A Nigerian court has postponed Binance’s tax evasion case until April 30, giving local tax authorities time to address the exchange’s request to annul an order for court documents to be served via email.
According to Reuters, Chukwuka Ikwuazom, a lawyer for the crypto exchange, argued that the tax authority’s request to serve court documents via email should be invalidated. Ikwuazom contended that the Federal Inland Revenue Service (FIRS) did not seek prior court approval to serve the documents outside of Nigeria, as Binance does not have a physical office 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 Cayman Islands and resident in Cayman Islands is improper and should be set aside,” Ikwuazom stated.
Nigeria initiated a lawsuit against Binance demanding that the company pay $79.5 billion in damages for alleged economic disruptions caused by its operations in the country. The Nigerian government also claims that Binance owes $2 billion in back taxes, accusing the exchange of contributing to the instability of Nigeria’s national currency, the naira.
In documents reviewed by Reuters, the FIRS claims that Binance maintains a “significant economic presence” in the country, making it liable for corporate income tax. The agency is now pushing for a court order that would require Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on any unpaid taxes.
Tax Evasion Case and Detention
In February 2024, Nigerian authorities detained two Binance executives—Tigran Gambaryan and Nadeem Anjarwalla—amid an investigation into the company’s activities within the country.
Authorities claimed that Binance’s operations led to significant disturbances in the Nigerian naira and the broader financial system, with over $26 billion in crypto transactions reportedly being processed through the platform.
The detentions took place after Binance executives engaged with Nigerian officials to discuss regulatory matters. These included demands for access to transaction data involving the naira and a request to remove certain Nigerian users’ data from Binance’s platform. The executives were reportedly unwilling to comply without first consulting their respective embassies, a move that led to their detention under suspicion of money laundering and tax evasion.
Anjarwalla managed to escape custody in March 2024, reportedly using a smuggled passport, while Gambaryan remained detained. In October 2024, Gambaryan was released and the money laundering charges against him were dropped. Binance’s CEO expressed concerns that the detentions set a troubling precedent for international business operations, particularly for companies engaged in cryptocurrency and blockchain technologies.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
