The Federal High Court in Abuja has admitted documents presented by the Federal Inland Revenue Service (FIRS), confirming its investigation into Binance’s financial dealings in Nigeria. The crypto giant has been under scrutiny for allegedly failing to pay and remit taxes, including Value Added Tax (VAT) and Company Income Tax (CIT).
At the Friday hearing, Justice Emeka Nwite allowed the documents into evidence after a submission by FIRS counsel, Moses Idehu. According to Idehu, the documents detail the firm’s financial activity within Nigeria. This development follows a May 2024 amendment to FIRS’s lawsuit, where the agency accused Binance of operating services—including buying, selling, and transferring cryptocurrency—without deducting VAT as required under Section 40 of the FIRS Establishment Act (2007, as amended).
Earlier in June, the court discharged Tigran Gambaryan, a 39-year-old American, and Nadeem Anjarwalla, who had fled custody, from the tax evasion suit after Binance named Ayodele Omotilewa as its local representative. The newly appointed representative denied the allegations, allowing the case to proceed.
Behind the Scenes of the Investigation
During the resumed proceedings, Muftau Abdukarim, Assistant Director of the Government Business Task Office at FIRS, testified that his department began investigating Binance after receiving a memo from the agency’s Litigation and Prosecution Department on 12 March 2024.
“Upon receiving the memo, I minuted it immediately to one of my subordinates, Omoshola Babafemi, to carry out the investigation,” he explained.
He added that the investigation used TaxPro Max, FIRS’s internal research software. Findings were compiled in a report dated 19 March 2024 and sent back to the department for further action.
“Please find attached the report as received from the scheduled officer assigned to confirm the compliance status of Binance Holdings Ltd concerning their operations in Nigeria,” read a memo submitted as part of the evidence.
Binance’s lead counsel, Chukwuka Ikwuazom (SAN), did not object to the request to admit the documents, nor did he cross-examine the witness. The court has now adjourned the matter until 20 May 2025.
This case is part of growing scrutiny facing crypto exchanges operating in Nigeria as regulators tighten enforcement. For more on this unfolding story, follow this internal update and explore external reports from Reuters and CoinDesk.
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