A Nigerian court has postponed the tax evasion trial involving global cryptocurrency exchange Binance and two of its executives until April 30, giving the Federal Inland Revenue Service (FIRS) time to respond to a legal challenge filed by the company.
Binance’s legal counsel, Chukwuka Ikwuazom, argued that the court’s earlier February 11 order allowing court documents to be served via email was invalid. He noted that the tax authority failed to obtain court approval to serve legal documents on a foreign entity—Binance being registered and based in the Cayman Islands with no physical office in Nigeria.
“The order for substituted service on Binance is improper and should be set aside,” Ikwuazom told the court.
Massive Claims Against Binance
The Nigerian government is seeking to recover $2 billion in back taxes and $79.5 billion in economic damages, alleging that Binance’s operations contributed to the country’s ongoing currency instability and loss of government revenue.
Authorities claim Binance has a “significant economic presence” in Nigeria and is therefore liable to pay corporate income tax for the years 2022 and 2023, including a 10% annual penalty on unpaid taxes.
Crypto Crackdown and Executive Detention
The legal case follows a broader crackdown on cryptocurrency platforms in Nigeria. In 2024, two Binance executives were detained after officials accused the exchange of enabling large-scale naira trading, which they argue disrupted the local currency’s stability.
While Binance has not commented on the latest court proceedings, it has previously stated that it is collaborating with Nigerian tax authorities to resolve outstanding tax concerns and to understand its obligations.
Next Steps
The adjournment provides both sides more time to settle procedural matters before the case proceeds. With Nigeria tightening regulations around digital finance, the outcome of this case could set a critical precedent for foreign tech and crypto firms operating within the country.
