A Nigerian court has delayed its tax evasion case against cryptocurrency exchange Binance until April 30.
The delay will allow the Nigerian tax authority, the Federal Inland Revenue Service (FIRS), more time to respond to a legal request from Binance. Nigerian regulators accused Binance of tax fraud, currency disruption, and economic harm in the country.
On April 7, Binance’s lawyer, Chukwuka Ikwuazom, asked the court to cancel a previous order that allowed the FIRS to deliver legal documents to Binance by email.
He argued that Binance does not operate a physical office in Nigeria and is registered in the Cayman Islands. He claimed the FIRS did not follow the proper legal process to send court documents to a foreign company. Therefore, he asked the court to set aside the earlier order.
Tax Authority Seeks Billions in Back Taxes and Damages
The FIRS filed the case against Binance in February 2024. It claims that Binance owes $2 billion in back taxes and demands an additional ₦79.5 billion (about $53 million USD) in damages, alleging that the exchange’s operations destabilized the local currency, the naira.
The FIRS also argues that Binance has a “significant economic presence” in Nigeria. Based on this, the agency says Binance should pay corporate income taxes for 2022 and 2023. The FIRS is asking the court to apply a 10% annual penalty and a nearly 27% interest rate on unpaid taxes. Binance has denied all allegations.
Past Clashes Between Nigeria and Binance
The tax dispute is not the first legal issue between Nigerian authorities and Binance. In February 2024, Nigerian officials arrested two Binance executives — Tigran Gambaryan and Nadeem Anjarwalla — on tax fraud and money laundering charges.
In June, the tax charges were dropped for both men. The remaining charges against Gambaryan were also dismissed in October. Anjarwalla escaped custody in March 2024 and fled to Kenya. He remains at large. Gambaryan, a U.S. citizen, was released in October 2024 and returned home. Reports at the time said he suffered from pneumonia, malaria, and a spinal injury during his detention.
In March 2024, Binance ended support for the Nigerian naira. The company stopped all deposits and withdrawals in the local currency, effectively pulling out of the Nigerian market. The court has now set a new hearing date for April 30.