Binance Holdings Limited, a major global cryptocurrency exchange, has urged the Federal High Court in Abuja to dismiss the “purported substituted service” of a lawsuit filed by the Nigerian government. The lawsuit demands over $81 billion in fines for alleged economic losses and unpaid income tax.
At a hearing on Monday, Binance’s legal representative, Chukwuka Ikwuazom, SAN, requested the court to annul the service process used by the Federal Inland Revenue Service (FIRS). The government is seeking $79.5 billion in alleged economic damages, alongside N231 million in associated charges and $2 billion in unpaid income tax for 2022 and 2023. Additionally, the FIRS demands a 10% penalty and a 26.75% annual interest rate, based on the Central Bank of Nigeria’s current lending rate.
The lawsuit, marked FHC/ABJ/CS/1444/2024, accuses Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, of operating in Nigeria without registering for tax compliance, causing substantial financial harm. The case was first filed before Justice Inyang Ekwo on February 11, 2025.
As direct service on Binance proved difficult, the FIRS obtained permission to serve the lawsuit documents via substituted service. The court instructed that the documents be delivered through alternative means within seven days. However, Binance’s legal team argued that such service is invalid unless a foreign government or court confirms that attempts at direct service failed. They further contended that Nigerian law mandates substituted service outside the country to be carried out by the Federal Ministry of Justice.
Ikwuazom also challenged the validity of the service, pointing out that the email address used—eleanor-huges@binance.com—does not belong to anyone at Binance, including the named individual, Eleanor Hughes.
FIRS counsel, Chief Kanu Agabi, SAN, requested additional time to respond to Binance’s motion, as the company only served their motion that morning. Justice Ekwo adjourned the case to April 30, 2025, directing FIRS to file a response before the next hearing.
