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The Nigerian government’s tax battle with cryptocurrency exchange Binance has been postponed until the end of April, as legal wrangling continues over proper service of court documents and the exchange’s tax liability in the country.
A Nigerian court has adjourned the tax evasion case against Binance until April 30, 2025. This delay will give Nigeria’s Federal Inland Revenue Service (FIRS) time to respond to a request from the crypto exchange.
The postponement follows a challenge from Binance’s lawyer, Chukwuka Ikwuazom, who asked the court to invalidate an order that allowed court documents to be served to the company via email. Ikwuazom argued that Binance doesn’t have an office in Nigeria, and claimed the FIRS didn’t get proper court permission to serve documents to Binance outside the country.
The tax case centers around large financial claims against the cryptocurrency exchange. The FIRS sued Binance in February, claiming the exchange owes $2 billion in back taxes.
Beyond the tax bill, Nigerian authorities are seeking $79.5 billion in damages. They allege Binance’s operations harmed the local economy and helped destabilize the country’s currency, the naira.
Nigerian tax authorities argue that Binance should pay corporate income tax in Nigeria because it has a “significant economic presence” there. The FIRS is requesting a court order for the exchange to pay income taxes for 2022 and 2023, plus penalties and interest on unpaid amounts.
Binance denies these allegations. The exchange withdrew from the Nigerian market in March 2024, stopping all naira currency deposits and withdrawals.
The tax dispute followed earlier legal troubles for Binance in Nigeria. In February 2024, Nigerian authorities arrested and detained two Binance executives – Tigran Gambaryan and Nadeem Anjarwalla – on tax fraud and money laundering charges.
The legal situation took unusual turns in the months that followed. Anjarwalla, who holds British-Kenyan dual nationality, managed to escape Nigerian custody in March 2024 and fled to Kenya. He reportedly slipped away from his guards and is still wanted by Nigerian authorities.
Gambaryan, a US citizen and former IRS agent who served as head of financial crime compliance at Binance, remained in detention. His health reportedly deteriorated during his time in custody, with reports of pneumonia, malaria, and a herniated spinal disc requiring surgery.
Nigeria eventually dropped the tax charges against both executives in June 2024. The remaining charge against Gambaryan was dropped in October 2024, allowing him to return home to the United States.
After his release, Gambaryan claimed his detention was connected to Binance’s refusal to pay a $150 million bribe to Nigerian officials. Nigerian authorities have denied this version of events.
The case is part of a broader crackdown on cryptocurrency trading in Nigeria. Officials have accused Binance of facilitating capital flight through its peer-to-peer trading platform, particularly during periods of currency volatility.
As the case moves forward, the fate of Binance’s operations in Nigeria and the final resolution of the tax claims remain uncertain.
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