The Federal Inland Revenue Service (FIRS) has asked the Federal High Court in Abuja to dismiss an application by Binance Holdings Limited seeking to vacate an earlier order that allowed court papers to be served on the cryptocurrency firm by email.
The court, presided over by Justice Inyang Ekwo, had on February 11 granted leave for FIRS to serve the originating summons and other documents via email to Eleanor Hughes, a principal officer of Binance, due to the firm’s lack of physical presence in Nigeria.
Binance’s lawyer, Chukwuka Ikwuazom, SAN, filed an application on April 4 urging the court to set aside the substituted service, arguing that it was not in line with legal procedures for serving court processes on companies outside Nigeria’s jurisdiction. He maintained that Binance is a Cayman Islands-registered firm and not subject to such substituted service.
Ikwuazom submitted that FIRS did not comply with Order 6 Rules 18 and 20 of the court’s rules, which govern service outside jurisdiction, and failed to obtain the required court leave to serve Binance outside Nigeria.
In a counter-affidavit filed on April 14, FIRS disputed Binance’s claims. Ishaya Isuwa, a litigation officer, stated that Binance had not provided proof of registration in the Cayman Islands and that its registration status remains unclear. He argued that Binance has a significant economic presence in Nigeria and conducts cryptocurrency transactions targeting Nigerian users.
Isuwa said the email used for service belongs to Eleanor Hughes, Binance’s General Counsel, who has communicated with the Nigerian government on legal matters and appointed the law firm of Aluko & Oyebode to represent Binance in ongoing investigations.
He added that attempts to serve court documents on Binance’s detained representative, Tigran Gambaryan, were redirected to the law firm, which later declined service, claiming lack of authorisation.
FIRS contended that the substituted service via Hughes’ email was effective and had brought the case to Binance’s attention, as evidenced by its engagement of legal counsel. It maintained that Binance had suffered no miscarriage of justice.
At Wednesday’s proceedings, Ikwuazom confirmed that the matter was fixed for the hearing of the application to vacate the substituted service. He also filed a motion for extension of time to regularise processes, which the court granted.
FIRS’ counsel, Chief Kanu Agabi, SAN, indicated that he would respond to the substantive motion. The court adjourned the case until May 12 for hearing.
The FIRS is seeking $79.5 billion in damages from Binance, alleging economic losses resulting from the company’s operations in Nigeria between 2022 and 2023. The suit also names Tigran Gambaryan and Nadeem Anjarwalla as co-defendants.
While a separate court released Gambaryan after money laundering charges were dropped, Anjarwalla escaped custody in March 2024.
(NAN)