Nigerian authorities have postponed legal proceedings against Binance as tensions persist over the crypto exchange’s role in the country’s economic troubles.
According to a recent report, a court in Nigeria has pushed back the tax evasion case to April 30.
The delay gives the Federal Inland Revenue Service (FIRS) more time to respond to Binance’s request to cancel a previous court order that allowed legal documents to be served to the company via email.
The FIRS initially filed the lawsuit in February, claiming Binance owes the country a whopping $2 billion in taxes along with an additional $79.5 billion in economic damages.
Related court filings reveal that the agency is pushing for the exchange to pay corporate income taxes for the years 2022 and 2023.
On top of that, FIRS has demanded a 10% annual penalty on the unpaid taxes and nearly 27% interest on the outstanding amounts.
The agency has argued that Binance’s level of business activity qualifies as a “significant economic presence” in Nigeria, thereby making it liable for taxation under local law.
Binance, however, has challenged the court’s earlier decision to allow the order to be served via email.
According to Binance’s attorney Chukwuka Ikwuazom, the order should be annulled, as Binance is registered in the Cayman Islands, has no physical office in Nigeria, and was served without proper court authorisation for cross-border delivery.
Binance’s history of legal troubles in Nigeria
Since expanding its services to Nigeria on October 24, 2019, with the addition of Naira, Binance’s journey in the West African country has been marred with regulatory pushback.
Things came to a head in February 2024 when two Binance executives, Tigran Gambaryan, a US citizen, and Nadeem Anjarwalla, a British-Kenyan national, were unexpectedly detained by Nigerian authorities.
The executives had travelled to Abuja for what was supposed to be a series of meetings with government officials to address concerns around Binance’s local operations.
Instead, they were arrested and charged with tax evasion and money laundering.
The situation took a dramatic turn when Anjarwalla escaped custody in March and fled the country, reportedly making his way to Kenya, where he remains at large.
Gambaryan, however, stayed behind bars for months.
As previously covered on Invezz, reports soon started to surface that Gambaryan was suffering from pneumonia, malaria, and a herniated spinal disc, all while allegedly being denied proper medical attention.
His detention caught the attention of US lawmakers, which even led Representative Rich McCormick to introduce a resolution in July 2024 that classified his arrest as a hostage situation.
By October, the Nigerian government dropped the money laundering charges against Gambaryan, leading to his release on October 23, 2024.
He returned to the US the same month, bringing an end to a nearly seven-month-long detention.
In between, Binance officially halted all naira-related services and exited the Nigerian market in March 2024.
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