Global cryptocurrency exchange platform, Binance, has
publicly denied claims by the Nigerian government that it was properly served
with legal documents through a “substituted service” method over allegations of
$79.5 billion tax evasion.
The controversy arose after the Federal Inland Revenue
Service (FIRS) of Nigeria recently accused Binance of massive tax evasion and
claimed that the company was duly served with court processes by posting them
online and in national newspapers — a legal procedure known as “substituted
service.”
Binance Responds
In a statement released by Binance, the company
rejected the claim, stating that it had not been served properly or officially
notified of any legal action by the Nigerian authorities.
“Binance has not received any formal
notice or document directly from the Nigerian government regarding the alleged
tax evasion claims. Any suggestion that we were served through substituted
means is inaccurate,” the company said.
Background of the Allegations
The Nigerian government, through the FIRS, recently
slammed Binance with a multi-billion dollar tax evasion lawsuit, accusing the
crypto giant of operating in Nigeria without proper registration and failing to
pay Value Added Tax (VAT), Company Income Tax (CIT), and other mandatory
levies.
The case has sparked national attention, especially
after the government alleged that Binance facilitated capital flight and
illegal financial transactions worth over $79.5 billion.
Government's Stance
According to the FIRS, after efforts to serve Binance
directly failed due to the company's non-physical presence in Nigeria, the
agency resorted to substituted service — publishing court notices on Binance in
Nigerian newspapers and online platforms, which they claim is legally binding.
The Nigerian government insists that Binance must
appear before the court to respond to the charges.
Implications and Next Steps
The case against Binance is part of a broader
crackdown by Nigerian authorities on crypto platforms operating in the country
without regulatory approval.
Legal experts say the disagreement over substituted
service could complicate proceedings and prolong the legal battle.
Binance has maintained that it is willing to engage
with Nigerian regulators but expects due process and fair treatment.
Industry Reactions
The development has generated mixed reactions within
Nigeria's crypto community. While some support the government’s move to enforce
tax laws, others worry that the approach could discourage international tech
investment and innovation in the country.
For now, all eyes are on the Nigerian courts to
determine whether the substituted service method used on Binance will hold
legal ground.
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