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Nigeria has sued Binance for $81.5 billion for running an unlicensed operation and tax evasion.
Nigeria Demands Binance Pay for Economic Harm
The Nigerian government has reportedly filed a lawsuit against Binance, seeking $79.5 billion in compensation for “economic losses” and $2 billion in back taxes. The lawsuit, filed in Federal High Court in Abuja, accuses the cryptocurrency exchange of operating in Nigeria without a license and failing to comply with tax laws.
This lawsuit is the latest escalation in the dispute between Binance and Nigerian authorities. As reported by Bitcoin.com News and other media outlets, the conflict began after officials blamed Binance for contributing to the sharp depreciation of the local currency in early 2024.
In addition to blocking the cryptocurrency exchange, Nigerian officials took steps to compel Binance to pay taxes. Yet, on June 14, 2024, Nigerian authorities dropped tax evasion charges against Binance and its executives, Tigran Gambaryan and Nadeem Anjarwalla.
Gambaryan’s Allegations Reignite Feud
However, according to a Guardian report, Nigeria’s Federal Inland Revenue Service (FIRS) now seeks income taxes from Binance for 2022 and 2023, plus a 10% annual penalty on unpaid amounts. The FIRS also wants Binance to pay 26.75% interest on the unpaid taxes.
In an affidavit supporting the lawsuit, Jimada Mohammed Yusuf, a member of the investigating team, suggested that Binance’s failure to respond to a demand notice prompted the lawsuit.
The lawsuit was filed days after Gambaryan, Binance’s head of crime compliance, who spent several months in Nigerian detention, alleged that three lawmakers solicited a bribe. As reported by Bitcoin.com News, Gambaryan, who also denied claims that Binance had transferred $26 billion out of the country, reiterated claims that the lawmakers demanded a $150 million bribe.
Nigerian Information Minister Mohammed Idris responded angrily to the allegations, accusing Gambaryan of spreading falsehoods. Idris also claimed that the Nigerian government rejected a $5 million offer from the United States to secure Gambaryan’s release.