The Nigerian government has filed a lawsuit against Binance seeking $81.5 billion in damages, including $79.5 billion in alleged economic losses and $2 billion in unpaid taxes, according to court documents released on Wednesday.
Authorities blame the world’s largest cryptocurrency exchange for the country’s currency crisis, claiming its platform was widely used to trade the local naira, contributing to financial instability. Nigerian authorities detained two Binance executives in 2024 as part of a broader crackdown on cryptocurrency trading.
Tax Evasion Allegations
Binance, which is not registered in Nigeria, has yet to respond to the lawsuit but has previously said it is working with the Federal Revenue Service (FIRS) to address potential tax liabilities.
The FIRS argues that Binance has a “significant economic presence” in Nigeria and should therefore be subject to corporate tax. The authorities are seeking court approval to impose income tax for 2022 and 2023 and a 10% annual penalty on unpaid amounts. They are also seeking a 26.75% interest rate on unpaid taxes based on the Central Bank of Nigeria’s credit rate.
Wider Legal Challenges
Binance already faces four tax evasion charges in Nigeria, including non-payment of value-added tax, corporate tax, failure to file tax returns and facilitating tax evasion through its platform.
In response to regulatory pressure, the company announced in March last year that it would cease all naira transactions and trading.
In addition to the tax-related charges, Binance also faces separate money laundering charges from Nigeria’s anti-corruption agency, which the company has denied.