- The recent adjournment of the tax evasion case involving Binance by a Nigerian court until the end of April.
- The ongoing legal proceedings and regulatory examination are faced by Binance.
- Nigeria is seeking $81.5 billion from Binance, alleging its activities harmed the economy and devalued the Naira.
The Courts Order
A Court in Nigeria has adjourned hearing a tax evasion case against Binance to April 30 to enable the local tax agency to respond to a request by the cryptocurrency exchange to overturn an order for court papers to be served on it via email, a lawyer representing Binance indicated on Monday.
The attorney, Chukwuka Ikwuazom, requested that the court vacate the order since the tax authority did not get a leave from the court to serve court process on Binance outside Nigeria. Binance has no office in Nigeria.
“Overall the order for substituted service as issued by the court on February 11, 2025 upon Binance who is. registered under Cayman Islands law and resident in Cayman Islands is unlawful and ought to be set aside,” Ikwuazom said.
The Demand Of Nigeria
The Court sued Binance, demanding it to pay $79.5 billion in economic damages it claims its operations caused in the nation and $2 billion in unpaid taxes, based on court papers.
Authorities hold Binance, the world’s largest cryptocurrency exchange, responsible for the country’s currency volatility and arrested two of its executives in 2024 after cryptocurrency websites became platforms of choice for exchanging the local naira currency.
Binance, which is not registered in the respective country, did not immediately respond to a request for comment. It has previously said it is working with Nigeria’s Federal Inland Revenue Service to resolve potential historic tax liabilities.
The inland revenue service alleges in documents seen by Reuters that Binance has a “significant economic presence” and is therefore liable for corporate income tax. It is seeking a court declaration that Binance pay income taxes for 2022 and 2023, plus a 10% annual penalty on unpaid amounts.
The case is part of a broader crackdown on crypto trading in Nigeria.
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