Nigeria has filed a lawsuit against Binance, the world’s largest cryptocurrency exchange, seeking $79.5 billion in economic damages and an additional $2 billion in back taxes.
Seeks Court Ruling on Binanceโs Tax Obligations
The Federal Inland Revenue Service (FIRS) claims the exchange has a substantial presence in the country but has failed to meet its tax obligations. It is asking the court to declare that Binance must pay income taxes for 2022 and 2023, along with a 10% annual penalty on any unpaid amounts.
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Regulators also argue that Binanceโs platform has contributed to the sharp depreciation of Nigeriaโs national currency, the naira, intensifying financial pressures on Africaโs largest economy
Binance has not officially responded to the news. However, has previously said, that it is working with Nigeriaโs FIRS to address outstanding tax matters but disputes the charges. The exchange argues it is being unfairly singled out amid the countryโs broader crackdown on crypto firms.
Binance Executives Detained in Nigeria
Binance was already facing four tax evasion charges in Nigeria before a broader regulatory crackdown on the cryptocurrency industry intensified last year.
In February 2024, authorities detained two of the exchangeโs executives, Tigran Gambaryan and Nadeem Anjarwalla, on charges of money laundering and tax evasion – the case that drew global attention.
In response to increasing pressure, Nigeriaโs Economic and Financial Crimes Commission dropped money laundering charges against Binance in October 2024. Gambaryan was released, and Anjarwalla fled the country.
Despite his escape, Binance still faces money laundering charges from Nigeriaโs anti-corruption agency, which it denies. However, the exchange halted all naira-related trading pairs on its platform a month after both executives were detained.
On the Flipside
- Governments worldwide are intensifying oversight of cryptocurrency platforms to prevent illicit financial activities.
- Binance pushes forward with expansion in Thailand and Indonesia despite ongoing legal challenges.
Why This Matters
The lawsuit highlights the mounting regulatory pressures on crypto platforms in emerging markets. A ruling against Binance could set a precedent for how digital asset firms navigate national legal frameworks, shaping global regulatory approaches to the industry.
