As per Reuters, Nigeria has taken legal action against cryptocurrency exchange Binance, demanding $79.5 billion in damages for economic losses and $2 billion in unpaid taxes. The lawsuit, filed in the Federal High Court in Abuja, accuses Binance of tax evasion, violating foreign exchange rules, and contributing to the decline of the naira.
Nigerian officials claim Binance played a role in the country’s financial struggles, particularly the naira’s instability. In 2024, two Binance executives were detained after reports surfaced that cryptocurrency platforms, including Binance, were widely used to trade the local currency.
Authorities argue the exchange enabled unauthorized transactions and currency speculation, which further weakened the naira.
The lawsuit states that Binance has a “significant economic presence” in Nigeria, making it responsible for corporate income tax. The Federal Inland Revenue Service (FIRS) is asking the court to order Binance to pay taxes for 2022 and 2023, plus a 10% penalty and 26.75% interest based on the Central Bank of Nigeria’s lending rate.
Binance previously said it is working with FIRS to resolve any past tax issues. However, it is already facing four separate tax-related charges, including failing to pay value-added tax (VAT) and company income tax, not filing tax returns, and allegedly helping users avoid taxes.
In response to the legal pressure, Binance stopped all naira transactions in March last year. The company is also facing separate money laundering accusations from Nigeria’s anti-corruption agency, which it strongly denies.
Nigeria’s lawsuit comes after the country dropped charges against Binance executive Tigran Gambaryan. Gambaryan later accused Nigerian officials of corruption, claiming the government is targeting Binance to shift attention away from its own economic problems. Nigerian authorities, however, dismissed his claims as false.
As the case unfolds, Binance continues to challenge the allegations. The lawsuit’s outcome could have major implications for the cryptocurrency industry in Nigeria.
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