In a legal showdown that could reshape how global crypto firms operate in Africa, Nigeria’s Federal Inland Revenue Service (FIRS) and cryptocurrency exchange Binance are locked in a fierce courtroom battle over alleged tax evasion totaling $2 billion.
The drama intensified on April 7, 2025, when a Nigerian court postponed the high-profile trial to April 30, following a legal objection raised by Binance. The exchange, represented by senior lawyer Chukwuka Ikwuazom, challenged the legitimacy of a court order that allowed legal documents to be served to Binance via email — a move the defense claims violates international service protocols.
“The order for the substituted service granted on 11 February 2025 is improper and should be set aside,” Ikwuazom asserted during the proceedings.
The core of the dispute stems from Binance’s registration in the Cayman Islands, which, according to its legal team, exempts it from being served through alternative means without a specific court directive.
🇳🇬 Why Nigeria Is Coming After Binance
The FIRS filed the suit in February 2025, alleging that Binance dodged taxes between 2022 and 2023, and played a role in destabilizing the Nigerian naira. The agency is seeking $79.5 billion in damages, in addition to a 10% annual penalty and nearly 27% interest on the unpaid taxes.
Authorities argue that Binance has a “significant economic presence” in Nigeria, which qualifies it for local tax obligations — despite being headquartered overseas.
🕵️ A Wider Crackdown on Crypto in Africa’s Biggest Economy
This tax case isn’t an isolated incident. It’s the latest chapter in a wider government crackdown on cryptocurrency platforms, with Binance squarely in the crosshairs.
Two senior Binance executives — Tigran Gambaryan and Nadeem Anjarwalla — were detained in Nigeria in early 2024 on charges of tax evasion and money laundering. However, tax-related charges against both were dropped in June, and Gambaryan saw his remaining charge dismissed in October.
Meanwhile, Anjarwalla escaped custody in March 2024 and is believed to be in Kenya, where he remains a fugitive.
What’s Next for Binance and Nigeria?
With the next court date set for April 30, the spotlight remains on how Nigeria will navigate its legal and regulatory battles with global crypto giants. The case could set a precedent for how digital platforms are taxed in emerging markets, especially when those platforms operate remotely without a physical footprint.
As Africa continues to embrace blockchain and digital currencies, this legal battle could become a defining moment for crypto regulation on the continent — and possibly the world.
