The Federal Inland Revenue Service (FIRS) has called on the Federal High Court in Abuja to dismiss Binance Holdings Limited’s application seeking to nullify a court order permitting the service of legal documents via email. This development is part of an ongoing legal battle in which the Nigerian government is pursuing $79.5 billion in damages and an additional $2 billion in back taxes from the cryptocurrency exchange, alleging that Binance’s operations have significantly contributed to the country’s economic instability, particularly the depreciation of the naira.
Binance contends that the FIRS did not adhere to proper legal procedures for serving court documents to a foreign entity. The company’s counsel, Chukwuka Ikwuazom, SAN, argued that under Nigerian court rules, substituted service cannot be applied to companies outside Nigeria without strict compliance with procedures for serving entities beyond its jurisdiction. He emphasized that the FIRS failed to secure the court’s leave to serve outside its jurisdiction and did not meet the threshold for substituted service.
In response, the FIRS, represented by senior lawyer Kanu Agabi, SAN, countered these claims, asserting that Binance’s assertion of being registered in the Cayman Islands is “false and concocted,” and that the company has not produced any registration certificate to support its assertions. The FIRS further stated that Binance has a significant economic presence in Nigeria, operating an online platform dealing in cryptocurrency and virtual currency transactions globally, including in Nigeria.
The FIRS also highlighted that Eleanor Hughes, the email recipient of the court documents, is a principal officer of Binance who has actively engaged with Nigerian authorities, including the Economic and Financial Crimes Commission (EFCC). They argued that serving documents to her email address constitutes valid service.
The court had previously granted the FIRS permission to serve legal documents on Binance through substituted means by sending the processes via email to Hughes. Binance challenged this order, leading to the current legal dispute over the validity of the service.
The case has been adjourned to May 12, 2025, to allow the court to consider the arguments presented by both parties.
This legal tussle underscores the complexities of enforcing national laws on global digital platforms and raises questions about jurisdiction and regulatory compliance in the rapidly evolving cryptocurrency landscape.
