FIRS Refutes Binance’s Cayman Registration Claim, Dismisses Objection To Email Service In $79.5bn Tax Suit
The Federal Inland Revenue Service (FIRS) has objected to move by the cryptocurrency firm, Binance Holdings Limited to reject court documents served on it in respect of a $79.5billion suit pending against it and two others before the Federal High Court in Abuja.
The FIRS, in the suit marked: FHC/ABJ/CS/1444/2024 is among others, demanding $79.5 billion US dollars for economic losses allegedly caused by the operations of Binance and two of its officials – Tigran Gambaryan and Nadeem Anjarwalla – in Nigeria.
Upon an ex-parte motion filed by lawyer to the FIRS, Kanu Agabi (SAN), Justice Inyang Ekwo granted leave to FIRS to serve its court documents on Binance through substituted means by sending the processes via email address of one of its officials – [email protected].
Binance challenged the order for substituted service and urged the court to vacate it, arguing that it was improperly made and that conditions precedent were not met.
However, in its response, the FIRS faulted Binance’s challenge of the order for substituted service and prayed the court to reject it.
In a counter affidavit FIRS argued that Binance’s claims were false and concocted in an attempt to mislead the court.
It stated that Binance was not registered under the laws of Cayman Islands and is also not resident in Cayman Islands as claimed by its lawyers.
It added that the company’s registration status and residence is shrouded in secrecy, adding that the cryptocurrency firm did not exhibit its certificate of registration in Cayman Islands before the court.
FIRS stated that Binance has no registered address in Cayman Islands, as claimed, but only has significant economic presence in Nigeria.
It added that Binance only operates an online platform that deals in crypto and virtual currencies transactions globally, including the Federal Republic Nigeria.
FIRS said contrary to Binance’s Eleanor Hughes, whose email address was used for service, is the General Counsel and a principal officer of the firm who duly received all the processes served on the company through her email address.
It noted that Hughes, sometimes on March, 5 2024, caused a letter to be written to the Economic and Financial Crimes Commission, appointing the law firm of Aluko & Oyebode to provide legal representation to its in connection with an investigation into the activities of the company in Nigeria.
It recalled that Hughes had written several official communications, through the email, to the Federal Government.
FIRS stated that the law firm of Aluko & Oyebode had been representing Binance in connection with the ongoing investigation into its activities in the country.
It said there was an attempt to serve all the processes in the matter on Tigran Gambaryan, the company’s representative who was in Kuje Correctional Centre then, but that Gambaryan directed that the documents be served on the law firm.
It recalled that when the bailiff of the court was mobilised for the service, Aluko & Oyebode law firm declined to receive the documents, saying it had not been briefed by Binance.
FIRS stated that upon the service of the court processes on Binance as ordered by the court, the pendency of the suit had been brought to the knowledge of the company, which had briefed its lawyer, Aluko Oyebode and Co, to represent it before this court.
It noted that the lawyer, who appeared for the Binance, came to court because he had been briefed by the company, adding that Binance had not shown that it suffered any miscarriage of justice as a result of the service of the court documents by substituted means.
According to FIRS, service of the originating processes on Binance through Eleanor Hughes is good service in accordance with rules of this honourable court.
Justice Ekwo has adjourned till May 12 for the hearing of Binance’s motion changing service.
