Nigeria sues Binance for $81.5 billion over damages and taxes, alleging tax evasion. Legal battles continue, shaping crypto regulations and Binance’s future.
Nigeria has taken legal action against Binance, the world’s largest cryptocurrency exchange. The government is demanding $79.5 billion in economic damages and $2 billion in unpaid taxes. According to Reuters, Binance has faced accusations from authorities regarding its involvement in Nigeria’s currency fluctuations. Two executives at Binance experienced arrest in 2024.
Binance has declined to comment but announced their collaboration with Nigeria’s Federal Inland Revenue Service (FIRS) for tax matters. The company has taken steps to handle existing tax responsibilities. The cryptocurrency exchange Binance does not have an official registration status within Nigeria. Binance maintains a “significant economic presence” in Nigeria according to the government’s opinion despite their statements. The Nigerian government insists on corporate taxation because the company maintains an economic presence in the country.
Nigeria Demands Binance Pay Back Taxes for 2022 and 2023
The Nigerian officials have submitted a court request that seeks tax payments from Binance for both 2022 and 2023. The authorities demand Binance pay a 10% annual surcharge on outstanding taxes. Binance faces multiple government charges for failing to pay value-added tax (VAT) as well as refusing to submit tax reports and enabling illicit tax evasion through its platform.
Binance issued a statement contradicting the claims made against them. Binance announced through an official statement that it would discontinue all transactions and trading in the Nigerian naira starting from March 2024. Legal proceedings directed toward Binance executives advanced during this time.
Previously, Binance’s head of financial crime compliance, Tigran Gambaryan, stood trial before court proceedings started. The trial of Tigran Gambaryan resumed on September 2, 2024 since Nigerian courts restarted their operations after taking a break. The judicial proceedings initially planned for November were reorganized to take place sooner.
On October 23, 2024, the Nigerian government completely dropped all charges against Tigran Gambaryan. This legal decision brought a significant change to the ongoing court battle. This legal judgment will fundamentally influence Nigeria’s cryptocurrency legislation as well as regulatory standards throughout other nations.
The cryptocurrency sector follows each development closely as the court proceedings continue. The Nigeria government stands strongly against cryptocurrency but Binance maintains its position in defense. The coming months will determine the future of Binance’s operations in Nigeria and the country’s regulatory approach toward digital assets.
