Nigeria Sues Binance for $81.5 Billion Over Economic Losses and Tax Evasion

• Nigeria wants Binance to pay $81.5 billion for tax evasion and economic losses linked to the naira’s decline.
• Authorities say Binance has a strong presence in Nigeria and failed to pay taxes for 2022 and 2023.
• Binance denies wrongdoing but still faces a legal battle as Nigeria tightens crypto regulations.

Nigeria has filed a lawsuit demanding Binance pay $79.5 billion for economic losses and $2 billion in back taxes. The case, filed by the Federal Inland Revenue Service (FIRS), claims the crypto exchange significantly contributed to the naira’s depreciation and failed to meet tax obligations.

Nigeria Seeks Damages and Unpaid Taxes

FIRS alleges that the company has a “significant economic presence” in Nigeria. Authorities claim the platform enabled large-scale naira trading that negatively impacted the country’s currency. The lawsuit demands corporate income tax payments for 2022 and 2023, with additional penalties.

FIRS is also requesting a 26.75% interest rate on unpaid amounts based on Nigeria’s lending rate. The exchange is accused of tax evasion and non-compliance with the country’s tax regulations.

Previous Legal Actions Against Binance

Nigeria has already charged the company with four counts of tax evasion. These include failure to pay value-added tax, company income tax, and assisting users in avoiding taxes. The exchange stopped all naira transactions in March 2024 following a government crackdown.

Authorities also detained two executives, Tigran Gambaryan and Nadeem Anjarwalla, accusing them of financial crimes. FIRS later dropped the tax charges against the two executives, but Binance still faces separate money laundering charges. The government claims Binance facilitated illicit financial transactions through its platform.

International Pressure and Legal Outcomes

Gambaryan’s detention drew international attention. Reports indicated he suffered from health issues while in custody. US officials, including Representative Rich McCormick, pressured Nigeria for his release.

The US diplomatic effort resulted in money laundering charges being dropped in October. Nigerian authorities released Gambaryan on October 23 2024 after seven months of confinement. US ambassador to Nigeria Richard Mills worked alongside others to secure the release of Gambaryan.

Binance’s Position and Ongoing Legal Battle

Binance has stated it is cooperating with Nigerian authorities to resolve tax matters. The company has denied wrongdoing in money laundering cases. The latest lawsuit further intensifies the legal battle between Binance and the Nigerian government. Nigerian officials intend to maintain strict enforcement of tax requirements and cryptocurrency trading currency compliance. The final decision in this case will establish guidelines for how governments handle crypto exchanges operating without official local registration.