Binance Prays Court to Nullify Substituted Service on them for $81 Billion Fine
Binance Holdings Limited, a leading cryptocurrency exchange platform, has asked the Federal High Court in Abuja to set aside the alleged “purported substituted service” of the Nigerian government’s $81 billion economic loss fine and unpaid income tax suit against it.
According to reports, Chukwuka Ikwuazom SAN, counsel for Binance, made the request on Monday, in his motion, when he appeared before Justice Inyang Ekwo.
The motion seeks to invalidate the substituted service of the originating processes on Binance, citing that it was not done in accordance with the law.
The Nigerian government, through the Federal Inland Revenue Service (FIRS), had earlier asked the court to order Binance to pay
79,514,055,594.40 and N231 million for economic losses allegedly caused by its operations in Nigeria,as well as 2,001,000,000 in income tax for 2022 and 2023. The government also demanded a 10% penalty for non-payment of income tax for 2022 and 2023, a 26.75% interest rate, and other associated charges.
Binance, along with two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, are accused of contravening Nigerian laws by failing to register with the FIRS for tax compliance and causing economic losses to the country during the period under review.
The lawsuit alleges that Binance deliberately concealed its business activities despite having a “significant economic presence” in Nigeria.
Ikwuazom argued that substituted service of a process on a defendant outside jurisdiction can only be made where the government or a court of the foreign country the process was intended to be served certifies to the Court that the efforts made to serve the process have failed.
He also stated that the email address provided by the FIRS for substituted service does not belong to any employee or officer of Binance.
Counsel to the FIRS, Chief Kanu Agabi, SAN, told the court that the cryptocurrency firm served them with the said motion on Monday morning and urged the court to give him time to respond to the motion.
Justice Ekwo subsequently adjourned the matter to April 30, directing the FIRS to file its response to the motion.
This development is the latest in a series of legal battles between Binance and the Nigerian government. Binance faces separate charges of tax evasion, money laundering, and foreign exchange violations before Justice Emeka Nwite, in a case brought by both the FIRS and the EFCC. Binance has denied all charges.
The outcome of this case is being closely watched, as it has significant implications for the cryptocurrency industry in Nigeria and beyond. Several other countries, including the United States, have also imposed fines on Binance for regulatory infractions.
