The Federal Government of Nigeria has filed a lawsuit against cryptocurrency exchange Binance, seeking $79.5 billion in damages for alleged economic losses and an additional $2 billion in back taxes, according to court documents cited by Reuters on Wednesday.
The government has accused Binance, the world’s largest cryptocurrency exchange, of contributing to Nigeria’s currency crisis, with authorities previously detaining two Binance executives in 2024 following concerns over cryptocurrency platforms being used for naira trading and speculation.
Despite not being officially registered in Nigeria, Binance has been under scrutiny for its operations in the country. While the exchange has not yet responded to the latest lawsuit, it previously stated that it was working with the Federal Inland Revenue Service (FIRS) to address potential historic tax obligations.
The FIRS claims Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax. The revenue agency is requesting a court declaration that Binance must pay outstanding income taxes for 2022 and 2023, including a 10% annual penalty on unpaid amounts. Additionally, the government is demanding a 26.75% interest rate on unpaid taxes, tied to the Central Bank of Nigeria’s lending rate.
This latest lawsuit comes amid an ongoing crackdown on cryptocurrency operations in Nigeria, with Binance already facing four counts of tax evasion, including allegations of non-payment of value-added tax, company income tax, failure to file tax returns, and complicity in helping customers evade taxes through its platform.
Binance, which denies the allegations and is contesting the charges, announced in March 2024 that it was halting all transactions and trading in naira due to regulatory pressures.
Aside from tax-related offenses, Binance is also facing separate money laundering charges from Nigeria’s anti-graft agency.
