KeyTakeaways:
- Nigeria demands $81.5B from Binance, citing $79.5B in economic losses and $2B in unpaid taxes.
- The lawsuit accuses Binance of tax evasion, currency manipulation, and violating Nigerian tax laws.
- Binance executives face detention as Nigeria intensifies its crackdown on cryptocurrency platforms.
Nigeria has filed a lawsuit against crypto exchange Binance, seeking $81.5 billion for alleged economic losses and tax violations. The legal action follows earlier demands for $10 billion in damages, reflecting heightened tensions between the Nigerian government and the global crypto platform.
The Federal Inland Revenue Service (FIRS) claims Binance caused $79.5 billion in economic damage and $2 billion in unpaid taxes for 2022 and 2023. The lawsuit, filed at the Federal High Court in Abuja, accuses Binance of operating without proper tax registration despite having a presence in Nigeria. Officials argue that the exchange violated the Companies Income Tax Act and the Federal Inland Revenue Service Act.
According to court documents, Binance faces accusations of manipulating Nigeria’s currency, the naira, through unauthorized foreign exchange activities. Authorities claim these actions contributed to the currency’s depreciation, exacerbating Nigeria’s economic challenges. The FIRS asserts that Binance’s operations disrupted financial stability by facilitating transactions outside legal frameworks.
In addition to tax violations, the lawsuit highlights concerns over Binance’s compliance with foreign exchange regulations. Nigerian officials allege that the company failed to meet mandatory tax requirements despite its substantial trading volume.
Detention of Binance Executives Amid Government Crackdown
This legal move follows the 2024 detention of two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla. During a broader crackdown on cryptocurrency platforms, they were arrested suspected of foreign exchange manipulation and money laundering. Nigerian authorities allege that the executives had played a role in laundering approximately $35 million.
In response, Binance has denied the allegations and emphasized its commitment to complying with legal standards globally. The company stated it is engaging with Nigerian regulators to address ongoing concerns.
The lawsuit has raised alarm within Nigeria’s digital asset industry. Industry leaders warn that prolonged legal disputes could deter foreign investment and harm the local blockchain ecosystem. The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) has called for transparent discussions between stakeholders to resolve the issue constructively.
