Nigerian court postpones Binance tax evasion trial to April 30
A Nigerian court has adjourned a tax evasion case against Binance to April 30 to allow the country’s tax authority time to respond to a legal request from the exchange, according to a statement by the company’s legal counsel.
Reuters reported that the Federal Inland Revenue Service (FIRS) is seeking $2 billion in back taxes and $79.5 billion in damages for alleged economic losses resulting from Binance’s activities in Nigeria.
The agency claims Binance has a “significant economic presence” in the country and should, therefore, be subject to corporate income tax, including payments for 2022 and 2023, along with a 10% annual penalty on unpaid amounts.
Jurisdictional dispute over service of documents
The case has been delayed following Binance’s application to annul a prior court order permitting the service of documents by email.
Binance lawyer Chukwuka Ikwuazom argued that the service was invalid because the FIRS did not obtain judicial leave to serve legal papers outside Nigeria.
Binance is registered in the Cayman Islands and does not maintain a physical presence in the country.
Ikwuazom defended:
“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.”
The court granted the adjournment to enable the tax authority to respond to Binance’s motion formally. At the next hearing, the FIRS is expected to present arguments supporting the validity of the court-sanctioned substituted service.
Broader legal and regulatory context
The proceedings are part of a wider clampdown by Nigerian authorities on crypto-related platforms, which have been blamed for destabilizing the country’s currency markets.
In 2024, two Binance executives were detained as part of a broader investigation into the exchange’s role in facilitating naira-denominated crypto transactions.
Authorities allege that platforms like Binance have undermined official exchange rates and facilitated capital flight through peer-to-peer markets.
While Binance is not officially licensed to operate in Nigeria, local users continue to use it to access digital assets and stablecoins.
The post Nigerian court postpones Binance tax evasion trial to April 30 appeared first on CryptoSlate.
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Nigerian court postpones Binance tax evasion trial to April 30
A Nigerian court has adjourned a tax evasion case against Binance to April 30 to allow the country’s tax authority time to respond to a legal request from the exchange, according to a statement by the company’s legal counsel.
Reuters reported that the Federal Inland Revenue Service (FIRS) is seeking $2 billion in back taxes and $79.5 billion in damages for alleged economic losses resulting from Binance’s activities in Nigeria.
The agency claims Binance has a “significant economic presence” in the country and should, therefore, be subject to corporate income tax, including payments for 2022 and 2023, along with a 10% annual penalty on unpaid amounts.
Jurisdictional dispute over service of documents
The case has been delayed following Binance’s application to annul a prior court order permitting the service of documents by email.
Binance lawyer Chukwuka Ikwuazom argued that the service was invalid because the FIRS did not obtain judicial leave to serve legal papers outside Nigeria.
Binance is registered in the Cayman Islands and does not maintain a physical presence in the country.
Ikwuazom defended:
“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.”
The court granted the adjournment to enable the tax authority to respond to Binance’s motion formally. At the next hearing, the FIRS is expected to present arguments supporting the validity of the court-sanctioned substituted service.
Broader legal and regulatory context
The proceedings are part of a wider clampdown by Nigerian authorities on crypto-related platforms, which have been blamed for destabilizing the country’s currency markets.
In 2024, two Binance executives were detained as part of a broader investigation into the exchange’s role in facilitating naira-denominated crypto transactions.
Authorities allege that platforms like Binance have undermined official exchange rates and facilitated capital flight through peer-to-peer markets.
While Binance is not officially licensed to operate in Nigeria, local users continue to use it to access digital assets and stablecoins.
The post Nigerian court postpones Binance tax evasion trial to April 30 appeared first on CryptoSlate.
Read More