Nigeria has taken legal action against cryptocurrency exchange Binance, demanding $79.5 billion in damages for alleged economic losses and an additional $2 billion in unpaid taxes.
- Nigeria has filed a lawsuit against Binance, seeking $79.5 billion in damages and an additional $2 billion in unpaid taxes.
- Binance faces charges of tax evasion, non-payment of VAT, failure to pay company income tax, and aiding customers in evading taxes.
- Binance is also facing legal battles including money laundering charges and regulatory pressure.
Nigeria has taken legal action against cryptocurrency exchange Binance, demanding $79.5 billion in damages for alleged economic losses and an additional $2 billion in unpaid taxes, according to court documents released on Wednesday.
This lawsuit follows recent allegations made by Tigran Gambaryan, Binance’s head of financial crime, who claimed that three Nigerian lawmakers had demanded a $150 million bribe in cryptocurrency during a meeting with company representatives. However, the Nigerian government has strongly denied these accusations, dismissing them as “false and unfounded.”
Binance has been under intense scrutiny in Nigeria, facing four counts of tax evasion following a government crackdown on the cryptocurrency industry in 2023.
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The charges include non-payment of value-added tax (VAT), failure to pay company income tax, neglecting to file tax returns, and aiding customers in evading taxes through its platform, Reuters reported.
Authorities also accuse Binance, the world’s largest crypto exchange, of exacerbating Nigeria’s currency crisis, arguing that its platform has become a key channel for speculative trading of the naira.
In 2024, Nigerian officials detained two Binance executives as part of a broader crackdown on cryptocurrency platforms.
Binance, which is not registered in Nigeria, has yet to respond to requests for comment. However, the company has previously stated that it is working with Nigeria’s Federal Inland Revenue Service (FIRS) to address potential historic tax liabilities.
The FIRS argues that Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax. The agency is seeking a court ruling that would compel Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on any unpaid amounts.
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The Federal Inland Revenue Service (FIRS) is also demanding a 26.75% interest rate on Binance’s unpaid taxes, citing the Central Bank of Nigeria’s lending rate as the basis for this request.
In response to mounting regulatory pressure, Binance announced in March 2024 that it had ceased all transactions and trading in the naira.
However, the company remains entangled in legal battles, including separate money laundering charges filed by Nigeria’s anti-corruption agency, allegations that Binance has firmly denied.
Tigran Gambaryan, head of financial crime at crypto firm Binance, recently accused three Nigerian lawmakers of allegedly demanding a $150 million bribe in cryptocurrency during a meeting with company representatives.
