- Nigeria has filed a lawsuit against Binance, seeking $79.5 billion in economic damages and $2 billion in back taxes
- The Federal Inland Revenue Service (FIRS) alleges Binance’s operations have significantly impacted Nigeria’s economy and violated tax regulations
- This legal action follows previous detentions of Binance executives and ongoing investigations into the company’s activities in Nigeria
The Nigerian government has initiated legal proceedings against Binance, the world’s largest cryptocurrency exchange, demanding $79.5 billion for alleged economic losses and an additional $2 billion for back taxes. The Federal Inland Revenue Service (FIRS) claims that Binance’s substantial operations within Nigeria have adversely affected the nation’s economy and that the company has failed to comply with local tax obligations. This lawsuit is part of a broader crackdown on cryptocurrency activities in the country, which has previously seen the detention of Binance executives and investigations into the platform’s compliance with financial regulations.
Binance Had “Significant Economic Presence” in Nigeria
In a lawsuit filed at the Federal High Court in Abuja, Nigeria’s FIRS contends that Binance’s operations have led to significant economic disruptions, contributing to the depreciation of the local currency, the naira. The agency asserts that Binance’s “significant economic presence” in Nigeria obligates the company to pay corporate income taxes for the years 2022 and 2023.
Additionally, the FIRS is seeking a 10% annual penalty on the unpaid taxes and a 26.75% interest rate, corresponding to the Central Bank of Nigeria’s lending rate. citeturn0news14
This legal action follows a series of confrontations between Nigerian authorities and Binance. In 2024, two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained on charges of tax evasion and money laundering. While Anjarwalla reportedly escaped custody, Gambaryan was held in Kuje Prison under severe conditions, leading to international outcry and diplomatic efforts for his release. These events have intensified scrutiny of Binance’s operations within Nigeria. citeturn0news19
Exchange Will Cooperate
Binance has previously stated its intention to cooperate with Nigerian authorities to resolve any outstanding tax issues. However, the company has not yet publicly responded to the latest lawsuit. The outcome of this legal battle could have significant implications for the regulation of cryptocurrency platforms operating within Nigeria and potentially influence how other nations approach the oversight of digital asset exchanges.
