The Nigerian government has filed a lawsuit against Binance, seeking $79.5 billion for alleged economic damages linked to its activities in the country.
Authorities claim the cryptocurrency exchange contributed to the nation’s financial instability and is liable for unpaid taxes amounting to $2 billion. Court documents released on Wednesday outlined the case.
Binance Subject to Corporate Tax Obligations
The Federal Inland Revenue Service (FIRS) argues that Binance maintains a “significant economic presence” in Nigeria, subjecting it to corporate tax obligations. The agency demands tax payments for 2022 and 2023, alongside a 10% annual penalty on unpaid amounts.
Additionally, the FIRS has requested a 26.75% interest rate, reflecting the Central Bank of Nigeria’s lending rate.
Authorities have also linked Binance to the depreciation of Nigeria’s currency, the naira, citing the exchange as a key trading platform for digital transactions involving the local currency.
Meanwhile, Binance, which remains unregistered in Nigeria, has previously stated it is collaborating with the FIRS to resolve potential tax liabilities but has yet to respond to the latest legal action.
Detention of Binance Executives
Recall that Nigerian authorities detained two Binance executives in 2024, citing concerns over cryptocurrency’s impact on the nation’s financial stability. Digital currency platforms had become widely used for naira trading, prompting increased government scrutiny.
Notably, Nigeria dropped money laundering charges against Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance. The charges were dismissed two days before Gambaryan’s scheduled court appearance in Abuja. The Economic and Financial Crimes Commission (EFCC) withdrew the case, citing health concerns.
Until his release, Gambaryan remained in detention since February 2024, with multiple bail requests denied. The court considered him a flight risk, prolonging his stay in custody. His family raised concerns about his deteriorating health, reporting that he had contracted malaria and suffered from a herniated disk.
While the new lawsuit proceeds, Binance continues to face regulatory pressure in other jurisdictions as well.
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