Nigeria has filed a lawsuit against Binance, seeking $79.5 billion in damages for economic losses and $2 billion in back taxes. The case was revealed in court documents today (Wednesday), the Guardian reported.
Authorities blame Binance for worsening the country's currency problems. They detained two of its executives in 2024, linking cryptocurrency platforms to naira trading.
Nigeria Seeks Taxes, Penalties from Binance
Binance is not registered in Nigeria. It did not immediately respond to a request for comment. Previously, the company stated it was cooperating with the Federal Inland Revenue Service (FIRS) regarding past taxobligations.
FIRS argues that Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax. The agency is asking the court to order Binance to pay income taxes for 2022 and 2023. It is also seeking a 10% annual penalty on unpaid taxes and a 26.75% interest rate, based on the Central Bank of Nigeria’s lending rate.
???? Nigeria sues @binance for $81.5B over economic losses & back taxes! ???????????? Will this escalate crypto regulations in Africa?#Binance #Crypto #Nigeria pic.twitter.com/WwlZ9L2YPP
— Crypto News (CoinGape) (@CoinGapeMedia) February 19, 2025
Binance Halted Naira Trading amid Charges
Binance was already facing four tax evasion charges in Nigeria. The allegations include non-payment of value-added tax, corporate income tax, failure to file tax returns, and enabling tax evasion through its platform.
Binance is contesting these charges. In March 2024, it halted all naira-related transactions and trading. The company is also facing separate money laundering charges from Nigeria’s anti-graft agency, which it denies.
We are deeply relieved and grateful that Tigran Gambaryan has finally been released after enduring nearly eight months of detention in Nigeria. Throughout this difficult period, Tigran has shown immense strength, and we commend his resilience in the face of such severe adversity.…
— Richard Teng (@_RichardTeng) October 24, 2024
Executive Released Amid Diplomatic Talks
Earlier, Nigeria dropped all money laundering charges against Binance executive Tigran Gambaryan, as reported by Finance Magnates. The decision followed months of diplomatic talks. However, the case against Binance continues over alleged foreign exchange disruptions.
Gambaryan, a US citizen, had been in prison since April over allegations of laundering $34.4 million. His release followed a prosecution request citing diplomatic concerns and health issues. The judge did not grant full acquittal, leaving room for potential further legal action.
This article was written by Tareq Sikder at www.financemagnates.com.
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