Nigerian Court Postpones Binance’s Tax Evasion Case to End of April

A Nigerian court has postponed the ongoing tax evasion case against Binance until April 30, 2025, following the exchange's request for additional time. The delay gives Nigeria's Federal Inland Revenue Service (FIRS) more time to respond to a legal challenge raised by Binance.

Binance’s Legal Challenge

On April 7, Binance lawyer Chukwuka Ikwuazom argued that the court’s earlier order allowing court documents to be served to the company via email was improper. Binance does not have a physical office in Nigeria, and Ikwuazom contended that the FIRS did not receive proper court approval to serve legal notices to Binance outside of the country.

Ikwuazom stated, “On the whole, the order for the substituted service as granted by the court on February 11, 2025 on Binance, which is registered under the laws of the Cayman Islands, is improper and should be set aside.” The court agreed to adjourn the case until the end of the month to allow for a response from the Nigerian tax authority.

Tax Dispute and Alleged Liabilities

The case stems from FIRS’s claims in February 2025 that Binance owes approximately $2 billion in back taxes. In addition, the Nigerian tax body is seeking $79.5 billion in damages, arguing that Binance’s operations in the country have contributed to the destabilization of Nigeria’s currency, the naira.

Tigran Gambaryan (right) was seen in a September video struggling to walk into a courtroom in the Nigerian capital of Abuja. Source: X

FIRS also asserts that Binance, despite its registration in the Cayman Islands, has a “significant economic presence” in Nigeria, making it liable for corporate income tax in the country. The tax authority is requesting that Binance pay income taxes for 2022 and 2023, along with penalties. Specifically, FIRS seeks a 10% annual penalty on unpaid taxes, plus nearly 27% interest on the outstanding amounts.

Binance’s Previous Legal Issues in Nigeria

This case adds to Binance’s already complex legal history with Nigeria. In February 2024, Nigerian authorities arrested two Binance executives—Tigran Gambaryan and Nadeem Anjarwalla—on tax fraud and money laundering charges. However, by June 2024, the Nigerian government dropped the tax-related charges against both individuals. The charges against Gambaryan were completely dismissed in October 2024, while Anjarwalla managed to escape from custody in March 2024, fleeing to Kenya.

Gambaryan, a U.S. citizen, returned to the United States in October 2024 after suffering serious health issues during his detention in Nigeria, including pneumonia, malaria, and a herniated spinal disc that required surgery.

Binance’s Exit from the Nigerian Market

In March 2024, Binance made the decision to halt naira currency deposits and withdrawals from its platform. This move effectively ended Binance’s operations in Nigeria, further complicating its relationship with the country. Despite the ongoing legal battles, Binance has continued to deny any wrongdoing related to its tax obligations in Nigeria.

As the court case unfolds, all eyes will be on April 30, when the next legal developments in the dispute are expected to take place.