Nigerian Government Files Lawsuit Against Binance
The Nigerian government has launched a major legal battle against Binance Holdings Limited, demanding $79.5 billion in damages for alleged economic losses and an additional $2 billion in back taxes for 2022 and 2023. The Federal Inland Revenue Service (FIRS) filed the lawsuit at the Federal High Court in Abuja, accusing Binance and its executives, Tigran Gambaryan and Nadeem Anjarwalla, of operating without proper registration and failing to meet Nigerian tax obligations.
Binance Faces Multiple Legal Challenges in Nigeria
This case adds to Binance’s growing legal troubles in Nigeria. Previously, the FIRS and the Economic and Financial Crimes Commission (EFCC) charged the company with tax evasion, money laundering, and foreign exchange violations. The latest lawsuit includes demands for a 10% penalty on unpaid taxes for 2022 and 2023, along with a 26.75% annual interest rate, mirroring the Central Bank of Nigeria’s lending rate.
Allegations of Unregistered Operations and Tax Evasion
According to the FIRS, Binance has been operating in Nigeria for over six years without formal registration, despite maintaining a strong economic presence. During a 2024 meeting with the Securities and Exchange Commission, Binance executives reportedly disclosed that the platform had 386,256 active Nigerian users, a trading volume of $21.6 billion, and net revenue of $35.4 million in 2023. The government argues that Binance’s activities violate key Nigerian laws, including the Companies Income Tax Act and the Federal Inland Revenue Service (Establishment) Act of 2007.
Binance’s Response and Potential Implications
Binance has acknowledged its cooperation with the FIRS to address potential past tax liabilities but has not issued a formal statement regarding this latest lawsuit.
This legal battle highlights the increasing tensions between cryptocurrency exchanges and Nigerian regulators. The outcome could set a precedent for digital asset platforms operating in the country and influence regulatory strategies in other nations.
