The cryptocurrency exchange Binance has petitioned the Federal High Court in Abuja to dismiss a contentious lawsuit worth $79.5 billion related to “purported substituted service.” Chukwuka Ikwuazom SAN, Binance’s attorney, submitted the motion on Monday.
Ikwuazom argued that because Binance does not have a physical presence in Nigeria, the Federal Inland Revenue Service (FIRS) unlawfully attempted to serve court documents outside the country without the consent of a judge.
The first complaint, filed by Kanu Agabi SAN, claims that Binance and its executives, Nadeem Anjarwalla and Tigran Gambaryan, violated Nigerian tax laws, resulting in substantial financial losses.
Detention of Binance’s executives by Nigerian authority
Gambaryan and Anjarwalla were detained by the Nigerian police for several months in 2024 on suspicion of participating in an alleged unlawful operation by the nation’s government. Gambaryan’s charges were later dropped, and Anjarwalla escaped the nation.
Agabi explained that after unsuccessful attempts to directly serve documents to Binance, he sought alternative means, which the court approved on February 11.
Chukwuka, however, argued during Monday’s session that such measures could only be implemented with appropriate certification from a foreign court regarding unsuccessful service attempts.
However, Ikwuazom argued during Monday’s hearing that such measures could only be implemented with proper certification from a foreign court confirming the failure of service attempts.
“Where an order for substituted service is issued by this honorable court, service of the order and the process or document to be served outside jurisdiction can only be made through the Federal Ministry of Justice,” he added, arguing that the order for substituted service is invalid and liable to be set aside.
Tax evasion lawsuit against Binance adjourned to April 30
Agabi also requested extra time to reply, telling the court that the cryptocurrency company had delivered the motion to them that morning.
The court decided to postpone the tax evasion case against Binance until April 30 to allow the local tax authorities time to respond to a request from the cryptocurrency exchange.
In addition to the substantial fine, the tax regulator is pursuing penalties for operational infractions and suspected tax evasion.