Binance Faces Delayed Tax Case as Nigerian Court Postpones Hearing

A tax evasion case involving Binance has been delayed by a Nigerian court, pushing the next hearing to April 30.

The decision comes as Nigeria’s tax authority seeks more time to respond to the crypto exchange’s latest request.

Earlier, Binance’s lawyer, Chukwuka Ikwuazom, challenged the method of delivering legal documents to the company, arguing that serving documents via email was inappropriate given Binance’s registration and residence in the Cayman Islands. According to Ikwuazom, the Federal Inland Revenue Service (FIRS) did not follow proper legal procedures when sending the documents outside Nigeria, making the court order from February 11 invalid.

FIRS initiated the lawsuit in February, accusing Binance of owing $2 billion in taxes and demanding compensation of nearly $80 billion for economic damages. The tax authority claims that Binance’s presence in the country has destabilized the value of the naira, alleging the company owes corporate income tax for 2022 and 2023 due to its “significant economic presence” in Nigeria. They also seek a 10% annual penalty on any unpaid taxes and almost 27% interest.

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Binance’s legal troubles in Nigeria are not new. In early 2024, two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained over allegations of tax fraud and money laundering. While the charges against Anjarwalla were dropped by June, Gambaryan remained detained until October when he was finally released and allowed to return to the United States. His detention raised health concerns, including reports of pneumonia and other medical issues. Meanwhile, Anjarwalla managed to flee to Kenya during the legal proceedings and remains on the run.

Amid these legal battles, Binance halted naira deposits and withdrawals in March 2024, effectively withdrawing from the Nigerian market.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.