Nigeria judge adjourns tax evasion case against Binance until next month

A Nigerian judge on Wednesday adjourned a tax evasion case against the world's largest crypto exchange until next month

A Nigerian judge on Wednesday adjourned a tax evasion case against the world's largest crypto exchange Binance to next month after the revenue service asked for permission to serve court documents by email to the exchange.

Earlier this month, the presiding court adjourned the Binance case to allow the local tax authority to respond to a request by the cryptocurrency exchange to annul an order for court documents to be served on it by email.

The judge adjourned the hearing to May 12, according to the court.

Federal Inland Revenue Service (FIRS) is seeking to compel Binance to pay $79.5 billion for economic losses it says were caused by the exchange's operations in the country, plus $2 billion in back taxes, according to court documents.

Authorities blame Binance for instability in the naira currency, detaining two of its executives in 2024 after cryptocurrency websites emerged as platforms of choice for trading the local currency.

Binance did not respond to requests for comment on the allegations of tax evasion and destabilising the naira. It has previously said it is working with FIRS to resolve potential historic tax liabilities.

On Wednesday, FIRS asked the court to dismiss Binance's objection to being served court summons by email because it is registered offshore.

FIRS lawyer Kanu Agabi told the court that Binance's lawyers in Nigeria could also be served court summons on behalf of the company, arguing that Binance's registration was unknown and "shrouded in secrecy".

Binance does not have a physical office in Nigeria. But Agabi said Binance had a significant economic presence and operated an online platform dealing in crypto and virtual currency transactions globally, including in Nigeria.

"The defendant's application is incompetent, frivolous and an abuse of the court's process," Agabi said.

Earlier in April, Binance lawyer Chukwuka Ikwuazom asked the court to set aside an order for the tax authority to serve court documents on Binance outside Nigeria because the FIRS did not obtain a leave from court before doing so.

Ikwuazom had argued that the FIRS' actions were a "clear violation" of the rules of the court and an abuse of its process.output: A Nigerian court has adjourned a tax evasion case against the world’s largest cryptocurrency exchange Binance to May 12 to allow the revenue service to apply for permission to serve the crypto exchange with court documents by email.

Earlier this month, the presiding judge at the Federal High Court in Abuja adjourned the case to allow the Federal Inland Revenue Service (FIRS) to respond to a request by Binance to annul an order for court documents to be served on it by email.

The judge, in his ruling, adjourned further hearing of the case to May 12.

FIRS is seeking to compel Binance to pay $79.5 billion for economic losses it says were caused by the exchange’s operations in the country, plus $2 billion in back taxes.

The claims are part of a lawsuit filed by FIRS against the exchange, according to court documents seen by Reuters.

The suit, which began in April, is part of broader efforts by Nigerian authorities to crack down on cryptocurrency use in the country, which they blame for instability in the naira currency.

The claims are also part of a broader push by the government to raise revenue in the face of low oil prices and a battered economy.

The suit names Binance and its CEO, Changpeng Zhao, as defendants in the suit, which is pending at the Federal High Court in Abuja.

The suit, filed in April, followed the detention of two Binance executives in February after a court in the commercial capital, Lagos, ordered their arrest in a case filed by a local lender, Union Bank.

The executives were later released.

The case began after a report by Bloomberg in December indicated that Binance was being investigated by Nigerian authorities for potential tax evasion and destabilising the naira.

Binance has not responded to requests for comment on the allegations of tax evasion and destabilising the naira.

But the exchange is cooperating with FIRS to resolve potential historic tax liabilities in the country, a Binance spokesperson said in February.

On Wednesday, FIRS applied to the court to dismiss Binance's objection to being served court summons by email because it is registered offshore.

FIRS lawyer Kanu Agabi told the court that Binance's lawyers in Nigeria could also be served court summons on behalf of the company, arguing that Binance's registration was unknown and "shrouded in secrecy".

"We want to serve them (Binance) in a mode that will reach them in a valid manner and that is permissible by the law," Agabi said.

He added that Binance had a significant economic presence and operated an online platform dealing in crypto and virtual currency transactions globally, including in Nigeria.

Earlier in April, Binance lawyer Chukwuka Ikwuazom asked the court to set aside an order for the tax authority to serve court documents on Binance outside Nigeria because