Nigeria has filed a lawsuit against Binance, seeking $79.5 billion in damages for economic losses and $2 billion in back taxes.

Authorities blame Binance for worsening the country’s currency problems. They detained two of its executives in 2024, linking cryptocurrency platforms to naira trading.

Nigeria Seeks Taxes, Penalties from Binance.

The Crypto exchange platform is not registered in Nigeria. It did not immediately respond to a request for comment. Previously, the company stated it was cooperating with the Federal Inland Revenue Service (FIRS) regarding past tax obligations.

FIRS argues that the platform has a “significant economic presence” in Nigeria, making it liable for corporate income tax. The agency is asking the court to order them to pay income taxes for 2022 and 2023. Based on the Central Bank of Nigeria’s lending rate, it is also seeking a 10% annual penalty on unpaid taxes and a 26.75% interest rate.

Charges Brought By Nigeria.

Jimada Mohammed Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser, stated in an affidavit that Binance and its executives are liable for the economic losses incurred. He noted that FIRS had assessed Binance’s income tax liabilities for the years in question and issued a demand notice, which the company allegedly ignored, leading to the current legal proceedings.

Furthermore, the lawsuit alleges that Binance operated covertly within Nigeria despite having a significant economic presence. The cited violations include breaches of Nigeria’s Companies Income Tax Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services, and the Companies Income Tax Significant Economic Presence Order.

As the case progresses, significant implications for the operation of cryptocurrency platforms within Nigeria are expected. It may influence future regulatory approaches to digital assets in the country.

Executive Regains Freedom Amid Diplomatic Talks.

Nigeria dropped all money laundering charges against Binance executive Tigran Gambaryan. The decision followed months of diplomatic talks. However, the case against Binance continues over alleged foreign exchange disruptions.

Gambaryan, a US citizen, had been in prison since April over allegations of laundering $34.4 million. His release followed a prosecution request citing diplomatic concerns and health issues. The judge did not grant full acquittal, leaving room for potential further legal action.

Binance Halted Naira Trading Amid Charges.

The Crypto trading platform was already facing four tax evasion charges in Nigeria. The allegations include non-payment of value-added tax, corporate income tax, failure to file tax returns, and enabling tax evasion through its platform.

However, they are contesting these charges. In March 2024, it halted all naira-related transactions and trading. The company is also facing separate money laundering charges from Nigeria’s anti-graft agency, which it denies.