Nigeria Postpones Legal Proceedings Against Binance
In a recent development, Nigeria’s ongoing legal proceedings against cryptocurrency exchange Binance have been postponed until April 30, as reported by Reuters. This delay is the result of a challenge put forth by Binance regarding a prior court ruling that permitted Nigeria’s Federal Inland Revenue Service (FIRS) to deliver legal notifications to the firm via email. As Binance operates without a physical office in Nigeria, the company asserts that the FIRS failed to secure the necessary permission to serve legal documents outside the Cayman Islands, where it is registered.
Allegations and Financial Implications
The Nigerian authorities are pressing for an astounding $2 billion in unpaid taxes, in addition to seeking $79.5 billion in damages. They claim that Binance’s business operations have inflicted considerable economic damage, notably contributing to the decline of the Naira. According to government officials, the exchange holds a “significant economic presence” within Nigeria, thus making it liable to taxation laws. They further allege that Binance’s peer-to-peer trading platform has facilitated capital flight, especially during periods of extreme currency volatility.
Regulatory Efforts and Executive Cases
This case forms part of a wider effort by the Nigerian government to regulate cryptocurrency trading within its borders. The intensifying scrutiny of Binance had previously led to the detention of two of its executives last year. Tigran Gambaryan, a U.S. citizen, faced incarceration in Nigeria from February until October 2024. He was ultimately released after charges against him were dropped, allowing him to pursue medical assistance for back issues he attributes to his confinement. Gambaryan has claimed that his arrest was connected to Binance’s alleged refusal to comply with a $150 million bribe request made by Nigerian officials, a version that the Nigerian government disputes.
Another executive, Nadeem Anjarwalla, a dual citizen of Britain and Kenya, was arrested alongside Gambaryan but evaded capture during house arrest and managed to leave the country using an alternate passport, though he is still sought by Nigerian authorities. This case continues to attract significant attention as the Nigerian government intensifies its regulatory measures against the rapidly evolving cryptocurrency market.
