A Nigerian court has postponed the tax evasion case involving global cryptocurrency platform Binance until April 30. The delay follows the court’s decision to cancel an earlier order that allowed legal documents to be served via email.
According to Reuters, Binance lawyer Chukwuka Ikwuazom argued that the Federal Inland Revenue Service did not obtain proper approval to serve documents outside Nigeria. He maintained that the order was invalid because Binance is registered in the Cayman Islands and has no physical office in Nigeria.
The court agreed that the service process was flawed and acknowledged Binance’s foreign status. The February 11 order was set aside as improperly granted.
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Authorities in Nigeria claim Binance owes $81.5 billion, including $2 billion in unpaid taxes and $79.5 billion in alleged economic damages linked to its operations.
The FIRS accuses Binance of fueling the decline of the Nigerian Naira through unregulated peer-to-peer crypto trading. Officials say these activities have worsened capital flight and weakened the country’s financial system.
Nigeria’s currency has lost over 70 percent of its value since 2023, while inflation has surged to nearly 30 percent in 2024, raising concerns about market stability.
FIRS Links Binance Operations to Financial Instability
According to the FIRS, Binance processed more than $21.6 billion in transactions in Nigeria during 2023 alone. The agency argues that this volume of activity proves the company has a significant economic footprint in the country.
As a result, Nigerian officials insist Binance is liable for corporate income tax, a 10 percent penalty on unpaid taxes, and interest of 26.75 percent based on the Central Bank’s rate. According to local tax authorities, Binance’s absence of registration fails to provide an exemption from tax obligations within their locality.
The crypto exchange Binance faces investigations from legal authorities in different international jurisdictions. The founder of Binance, Changpeng Zhao, received a four-month prison term in the United States after committing money laundering violations the previous year.
The Nigerian court’s next session on the case is scheduled for April 30.
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