Federal Court Further Adjourns Tax Evasion Suit Against Binance

The Federal High Court in Abuja has again adjourned the tax evasion case against Binance Holdings Ltd until 24 September.

Binance is facing four charges of tax evasion filed by the Federal Inland Revenue Service (FIRS), which the parties are still exploring a settlement for. The case began in May and has seen multiple delays, including an adjournment on Thursday to allow for a report of settlement.

Judge Emeka Nwite made the decision after the prosecution lawyer, Moses Ideho, told the court that the parties were still in discussions about reconciling. However, Ideho also revealed that the prosecution could not proceed with the case due to two reasons. The first reason was that Judge Nwite had been elevated to the appeal court, which meant that the trial could not proceed before him. The second reason was that the parties were still exploring a settlement.

Binance's lawyer, Sunday Agaji, did not oppose the application for the adjournment.

In related news, Binance is also facing a separate suit before the same judge, where the FIRS is seeking $79.5 billion in damages over alleged economic losses caused by the company's operations in Nigeria.

The company's Nigerian representative, Ayodele Omotilewa, has been involved in the negotiations to settle the tax evasion case. On 12 July 2024, Omotilewa was re-arraigned by the prosecution, along with Binance Holdings Ltd, on four charges of tax evasion.

The charges against Binance include failing to pay taxes, underpayment of taxes, and failure to register as a tax entity in Nigeria.

According to court documents, the Economic and Financial Crimes Commission (EFCC) is also prosecuting Binance over allegations of money laundering. The EFCC accused the company of laundering $35.4 million.

Binance is a global cryptocurrency exchange with operations in many countries. The company has faced regulatory challenges in several countries, including Nigeria, over its operations.

The Federal High Court's decision to adjourn the tax evasion case is seen as a temporary setback for the FIRS, which had hoped to recover millions of dollars in unpaid taxes from Binance.