The Federal Government of Nigeria has launched a legal offensive against Binance, the world‘s largest cryptocurrency exchange, demanding $79.5 billion for alleged economic damages and $2 billion in unpaid taxes. Court documents cited by Reuters on Wednesday reveal that the government holds Binance responsible for exacerbating Nigeria’s currency crisis, a claim underscored by its 2024 detention of two Binance executives amid a crackdown on crypto platforms trading the naira.
The lawsuit, spearheaded by the Federal Inland Revenue Service (FIRS), accuses Binance of operating with a “significant economic presence” in Nigeria despite not being registered, making it liable for corporate income tax. The FIRS seeks a court order compelling Binance to pay taxes for 2022 and 2023, plus a 10% annual penalty on unpaid sums and a 26.75% interest rate aligned with the Central Bank of Nigeria’s lending rate. Binance, which has not yet responded to the latest suit, previously stated it is cooperating with the FIRS to address potential historic tax obligations.
This legal battle builds on earlier charges filed against Binance last year, including four counts of tax evasion—non-payment of value-added tax and company income tax, failure to file returns, and aiding customers in tax evasion via its platform. In response, Binance halted all naira transactions and trading in March 2023. The company also faces separate money laundering allegations from Nigeria’s anti-graft agency, intensifying scrutiny of its operations.
The government’s case stems from concerns that unregulated crypto platforms like Binance have destabilized the naira, particularly as they became preferred avenues for currency trading amid Nigeria’s economic struggles. The detention of Binance executives earlier this year signaled a broader clampdown on the crypto sector, reflecting authorities’ determination to assert control over digital finance.
Binance’s ongoing disputes with Nigeria highlight a clash between global crypto giants and local regulatory frameworks. The $79.5 billion claim for economic losses marks an extraordinary escalation, positioning this lawsuit as one of the largest of its kind against a crypto exchange. As the case unfolds, it could set a precedent for how Nigeria—and potentially other nations—addresses cryptocurrency’s economic impact, while testing Binance’s resilience in a key African market where it once thrived unchecked.
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