A Nigerian judge has adjourned the Binance tax evasion case to May 12 after the Federal Inland Revenue Service (FIRS) asked to serve court documents on the crypto exchange by email. The delay follows Binance’s objection to being summoned electronically due to its offshore registration and absence of a local office in Nigeria.
Earlier this month, the court had paused proceedings in the Binance tax evasion case to allow the FIRS respond to Binance’s request to cancel the initial email summons. Now, the new hearing will decide if the summons process was lawful and if Binance can be properly served despite operating outside Nigeria.
FIRS Accuses Binance of Economic Damage and Tax Evasion
The Binance tax evasion case began after the FIRS accused the global crypto platform of causing Nigeria over $79.5 billion in economic losses and evading $2 billion in unpaid taxes. Authorities also claimed Binance was responsible for weakening the naira by enabling illegal foreign exchange activities through its crypto network.
In February 2024, Nigerian officials detained two Binance executives over the ongoing investigation. While Binance has not responded to the latest claims, it has previously said it is working with the FIRS to resolve its “historic tax liabilities.”
Binance Legal Team Fights Email Summons in Tax Evasion Case
During the recent court session, FIRS lawyer Kanu Agabi insisted Binance could be served electronically since it has no physical office in Nigeria. He told the court that Binance operates “under secrecy” and should not avoid legal action because of its offshore status. Agabi added that Binance still profits from a “large Nigerian user base” through its global online platform.
In response, Binance’s lead lawyer Chukwuka Ikwuazom argued that serving the company by email without court approval violated legal procedure. He urged the judge to cancel the summons, saying FIRS failed to follow due process in this tax evasion case.
Binance Tax Evasion Case Remains in Legal Limbo
As the Binance tax evasion case returns to court on May 12, all eyes will be on the Nigerian judiciary. The outcome could set a major precedent for how crypto firms without a physical presence are prosecuted for tax offences. Until then, the FIRS and Binance remain locked in a legal battle over billions in alleged tax liabilities and the broader impact on Nigeria’s economy.
