A Nigerian court has postponed the country’s high-profile tax evasion case against Binance to April 30, allowing time for the Federal Inland Revenue Service (FIRS) to respond to a procedural objection from the cryptocurrency exchange.
According to a 7 April 2025 report by Reuters, Binance’s legal representative, Chukwuka Ikwuazom, challenged a previous court order that permitted legal documents to be served to the company via email.
Ikwuazom argued that Binance, registered and based in the Cayman Islands, should not have been served through substituted means without proper court authorization.
“The order for the substituted service granted on 11 February 2025, is improper and should be set aside,” Ikwuazom stated in court.
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Nigeria’s Tax Authority First Sued Binance In February Over $2B In Alleged Unpaid Taxes
The FIRS initially filed the lawsuit in February, alleging Binance owed approximately $2 billion in unpaid taxes. The regulator further claimed Binance’s operations in Nigeria contributed to the devaluation of the naira and demanded $79.5 billion in damages.
The FIRS also argued that Binance has a “significant economic presence” in Nigeria and should be liable for corporate income taxes for the years 2022 and 2023. It has asked the court to impose a 10% annual penalty on the unpaid taxes and nearly 27% interest.
The case is part of a broader crackdown on the crypto giant in Nigeria. In February 2024, two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained on tax and money laundering allegations.
Nigeria later dropped the tax charges against both in June, followed by the dismissal of the remaining charge against Gambaryan in October.
Anjarwalla escaped custody in March 2024 and fled to Kenya, where he remains at large. Gambaryan, a U.S. citizen, returned home later that year after reportedly suffering serious health issues while detained.
WIRED journalist @a_greenberg interviewed @TigranGambaryan, former IRS Criminal Investigations Special Agent and Head of Financial Crime Compliance at Binance, about his 8-month detention in Nigeria, and efforts from the public and private sector to bring about his release. “It… pic.twitter.com/OvVya6NMoZ
— Chainalysis (@chainalysis) April 1, 2025
In response to the escalating legal and regulatory pressure, Binance ceased support for naira-based transactions and exited the Nigerian market in March 2024.
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Binance Accelerates Global Expansion Despite Regulatory Hurdles
In November, a former senior employee at Binance initiated legal action against the cryptocurrency exchange’s UK division, alleging bribery and wrongful termination.
Amrita Srivastava, the plaintiff, claimed she was unfairly dismissed in May 2023 a month after raising concerns about a colleague’s alleged misconduct.
Meanwhile, Binance has accelerated its global expansion as of late. Earlier this year, the platform launched Binance Thailand, a joint venture in partnership with Gulf Innova, a subsidiary of Gulf Energy Development.
The platform is integrated with local Thai banks and has partnered with Binance Kazakhstan for brokerage services, all under the supervision of Thailand’s SEC. The expansion came as Binance and its US affiliate, Binance.US, have been under regulatory pressure.
More recently, Indonesian crypto exchange Tokocrypto, a subsidiary of Binance, announced that it has secured a full license from the country’s Commodity Futures Trading Regulatory Agency (Bappebti).
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Key Takeaways
- A Nigerian court has postponed Binance’s tax evasion case to April 30, allowing time for the FIRS to respond to a procedural objection.
- The case stems from a $2 billion tax claim and broader allegations that Binance harmed Nigeria’s economy, prompting the exchange to exit the local market.
- Despite legal troubles, Binance continues global expansion with new operations in Thailand and a licensed affiliate in Indonesia.
The post Nigerian Court Postpones Binance Tax Evasion Case For Regulator Response appeared first on 99Bitcoins.