Nigeria Sues Binance for $79.5B Over Alleged Economic Damage and Tax Evasion

Nigeria has filed a $79.5 billion lawsuit against Binance, accusing the world’s largest cryptocurrency exchange of causing economic harm and evading taxes. The government also seeks $2 billion in back taxes, blaming Binance for the country’s currency issues.

Court documents reveal that Nigerian authorities previously detained two Binance executives in 2024 as part of a broader crackdown on the crypto industry. Despite not being registered in Nigeria, Binance has been engaging with the Federal Inland Revenue Service (FIRS) to address tax concerns. FIRS claims the exchange has a "significant economic presence" in Nigeria, making it liable for corporate income tax. The agency is demanding payments for 2022 and 2023, a 10% yearly penalty, and a 26.75% interest rate on unpaid amounts.

Additionally, Binance faces four tax evasion charges, including non-payment of value-added tax (VAT), company income tax, failure to file returns, and facilitating tax evasion for users. In response to regulatory pressure, Binance ceased all transactions involving the Nigerian naira last March.

Beyond tax issues, Binance is also battling money laundering allegations from Nigeria’s anti-graft agency, which it denies. The lawsuit highlights the increasing scrutiny on crypto exchanges as governments worldwide tighten regulations.

Binance has not yet commented on the lawsuit but continues discussions with Nigerian authorities. This legal battle underscores Nigeria’s aggressive stance on cryptocurrency regulation as it seeks to control financial activities in the sector.