ABUJA – Nigeria has filed a lawsuit against cryptocurrency exchange Binance, demanding $79.5 billion in damages for alleged economic losses caused by its operations and an additional $2 billion in back taxes, according to court documents seen on Wednesday.
Thank you for reading this post, don't forget to subscribe!Authorities blame Binance, the world’s largest crypto exchange, for exacerbating Nigeria’s currency crisis, leading to the detention of two of its executives in 2024. Cryptocurrency platforms have been widely used for trading the naira, raising concerns over capital flight and market instability.
Despite not being registered in Nigeria, Binance has claimed it is working with the Federal Inland Revenue Service (FIRS) to resolve potential historic tax liabilities. However, the FIRS argues that Binance has a “significant economic presence” in Nigeria and is liable for corporate income tax. The agency is seeking a court declaration mandating Binance to pay taxes for 2022 and 2023, along with a 10% annual penalty on unpaid amounts and a 26.75% interest rate based on the Central Bank of Nigeria’s lending rate.
Binance is already facing four counts of tax evasion in Nigeria following a government crackdown on the crypto industry last year. The charges include non-payment of value-added tax, company income tax, failure to file tax returns, and allegedly enabling tax evasion by users.
In March 2024, Binance halted all naira transactions amid regulatory pressure. The company is also facing separate money laundering charges from Nigeria’s anti-graft agency, which it has denied.
This legal battle underscores Nigeria’s intensified efforts to regulate the cryptocurrency sector and recover revenue amid economic challenges.
