A high-profile tax evasion trial involving global cryptocurrency exchange Binance has been adjourned by a Nigerian court to April 30, 2025. The postponement aims to allow the country’s tax authority—the Federal Inland Revenue Service (FIRS)—time to respond to a motion filed by Binance seeking to nullify a court order permitting service of legal documents via email.
According to Chukwuka Ikwuazom, legal counsel for Binance, the order allowing court documents to be delivered electronically was improper and should be overturned. Ikwuazom argued that the FIRS failed to obtain the required court approval, or “leave of court,” to serve legal documents outside Nigeria—a necessary condition since Binance is incorporated and domiciled in the Cayman Islands and does not maintain a physical presence within Nigeria.
“The substituted service granted on February 11, 2025, is improper and should be set aside,” Ikwuazom told the court, emphasizing that Binance’s registration under Cayman Islands law requires due legal process for cross-border service of court documents.
The Nigerian government has initiated a sweeping legal battle against Binance, accusing the exchange of contributing to significant economic disruptions and widespread tax evasion. Court documents reveal that Nigeria is seeking $79.5 billion in damages for economic losses allegedly caused by Binance’s operations, alongside an additional $2 billion in unpaid taxes.
Authorities assert that Binance played a central role in destabilizing Nigeria’s currency, the naira, by serving as the dominant platform for unauthorized foreign exchange trading. In 2024, this led to the controversial detention of two Binance executives amid a broader crackdown on crypto platforms.
Binance, which has no official registration or operational office in Nigeria, has not issued a public statement regarding the adjournment. However, the company has previously stated that it is cooperating with the Federal Inland Revenue Service to address any historic tax liabilities.
Documents obtained by Reuters indicate that Nigerian tax authorities consider Binance to have a “significant economic presence” in the country. Based on this classification, the FIRS is seeking a legal ruling to compel the platform to pay corporate income taxes for the years 2022 and 2023. It also demands a 10% annual penalty on any unpaid amounts, further escalating the potential financial liability for the crypto firm.
The upcoming April 30 hearing is expected to determine whether the procedural challenge by Binance will succeed, and whether the broader tax evasion claims will proceed. The case underscores growing global tensions between governments and crypto exchanges, especially in developing markets grappling with financial instability and digital asset regulation.
