The Nigerian government has filed a lawsuit against international cryptocurrency exchange Binance, claiming unpaid taxes and damages totalling USD 81 billion in an unprecedented legal battle.
The lawsuit alleges that Binance has avoided paying taxes on its local profits and that its operations in Nigeria have seriously harmed the country’s economy.
Nigeria is taking a daring step in regulating its quickly expanding cryptocurrency industry and holding foreign operators responsible.
Court documents state that the government is requesting USD 2 billion in back taxes for 2022 and 2023 as well as USD 791.5 billion for alleged economic losses.
Authorities detained two Binance executives in 2024 after accusing the company of facilitating naira trading, and they blamed Binance for Nigeria’s currency problems.
Although Binance, which is not registered in Nigeria, has not yet commented, it has previously declared that it would work with the Federal Inland Revenue Service (FIRS) of Nigeria to address potential historical tax liabilities.
Because of its “significant economic presence” in the nation, according to the FIRS, Binance is subject to corporate income taxes, a 10% yearly penalty, and a 26.75% interest rate on overdue taxes based on Nigeria’s lending rate.
The cryptocurrency exchange is already facing four tax evasion-related charges, including non-compliance with tax return filings, corporate income tax, and failure to pay value-added tax (VAT).
Additionally, it was charged with allowing users to use its platform to avoid paying taxes. In March 2024, in response to increased scrutiny, Binance suspended all naira transactions and is still contesting the accusations.
Nigeria’s anti-corruption agency has also filed separate money laundering accusations against the company, which it has continuously refuted.
In a related development, Binance executive Tigran Gambaryan is the target of an A1 billion defamation lawsuit brought by Philip Agbese, a member of Nigeria’s House of Representatives.
Agbese claimed that Gambaryan had harmed his reputation by unjustly linking him and two other lawmakers to a USD 150 million bribery scandal.