Nigerian Court Delays Binance $81.5 Billion Tax Case Until April 30

TLDR

• Nigerian court postponed Binance tax case until April 30, 2025
• Nigeria seeks $2 billion in back taxes plus $79.5 billion in damages
• Binance challenged the court’s legal service method
• Two Binance executives were previously detained; one was released, one escaped
• Binance halted naira transactions in March 2024

Nigeria’s Federal Inland Revenue Service (FIRS) will have until April 30 to respond to a legal challenge from Binance in the ongoing tax evasion case against the cryptocurrency exchange. The court decision comes as Binance contests the method used to serve legal documents in the case.

Binance’s lawyer, Chukwuka Ikwuazom, asked the court to invalidate an order that allowed court documents to be served to the company via email. The lawyer argued that since Binance doesn’t have an office in Nigeria and is registered in the Cayman Islands, the FIRS should have obtained court permission to serve documents outside the country.

The tax evasion case began in February when Nigerian authorities sued Binance, claiming the exchange owed $2 billion in back taxes. The government also demanded $79.5 billion for alleged damages to the local economy.

Accusations Against Binance

Nigerian officials claim that Binance has a “major economic presence” in the country and should therefore pay corporate income tax. The FIRS requested that the exchange pay income taxes for 2022 and 2023, plus penalties and interest on the unpaid amounts.

The government also alleges that Binance’s operations harmed Nigeria’s economy and contributed to the devaluation of the national currency, the naira. Officials have accused the platform of facilitating capital flight through its peer-to-peer trading services during periods of currency instability.

Binance has denied these accusations. The exchange stopped naira currency deposits and withdrawals in March 2024, effectively exiting the Nigerian market.

Executive Detention Controversy

The tax case follows a complex legal history between Nigeria and Binance. In February 2024, Nigerian authorities arrested and detained two Binance executives: Tigran Gambaryan and Nadeem Anjarwalla. Both were charged with tax fraud and money laundering.

Gambaryan, a US citizen who served as Binance’s head of financial crime compliance, was held from February to October 2024. He was released after Nigerian authorities dropped all charges, allowing him to return home for medical treatment. Reports indicated his health had deteriorated during detention, with cases of pneumonia, malaria, and a herniated spinal disc.

“Nigerian Prison Official Abandons Binance Executive To Struggle In Pains In Court Premises As He Begs for Help ” pic.twitter.com/q8GhvIluNq

— Oyindamola🙄 (@dammiedammie35) September 2, 2024

Escape and Allegations

Anjarwalla, a British-Kenyan dual national, escaped Nigerian custody in March 2024 while under house arrest. He reportedly fled to Kenya using a second passport and remains at large.

After his release, Gambaryan claimed his detention was connected to Binance’s refusal to pay a $150 million bribe to Nigerian officials. The Nigerian government has denied these allegations.

The case against Binance is part of a broader crackdown on cryptocurrency trading in Nigeria. The country’s stance on digital assets has been complex, with authorities expressing concerns about their impact on the national economy and financial system.

Meanwhile, Binance’s co-founder Changpeng “CZ” Zhao has moved on to other projects. On April 7, 2025, he agreed to advise Pakistan’s newly formed Crypto Council, which aims to advance regulations, infrastructure, education, and adoption of cryptocurrencies in that country.

The Binance tax case in Nigeria remains unresolved, with the next court date set for the end of April. The outcome could have implications for how international crypto exchanges operate in emerging markets where regulatory frameworks are still developing.