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Court documents have revealed that Nigeria has filed a lawsuit against cryptocurrency exchange Binance, demanding $79.5 billion for alleged economic damages and $2 billion in back taxes.
The government blames Binance for the country’s currency troubles and had previously detained two of the exchange’s executives in 2024.
Binance, which is the world’s largest crypto exchange and is not registered in Nigeria, has yet to comment on the lawsuit. However, the company has acknowledged its engagement with Nigeria’s Federal Inland Revenue Service (FIRS) to address potential historical tax liabilities.
According to FIRS, Binance has a "significant economic presence" in Nigeria, making it responsible for corporate income tax. The agency is pursuing a legal declaration for Binance to pay income taxes for the years 2022 and 2023, as well as a 10% yearly penalty on the overdue amounts. Additionally, FIRS is demanding a 26.75% interest rate on unpaid taxes, which aligns with the Central Bank of Nigeria’s lending rate.
The lawsuit is a continuation of Nigeria’s crackdown on the cryptocurrency industry, with Binance already facing four counts of tax evasion in the country. The charges include accusations of non-payment of value-added tax, company income tax, failure to file tax returns, and aiding customers in tax evasion through its platform.
In response to the ongoing legal challenges, Binance announced last March that it would cease all transactions and trading involving the Nigerian naira. Alongside the tax-related charges, Binance is also contending with separate allegations of money laundering by an anti-graft agency, which the company has denied.
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