Nigerian Government Sues Binance for $79.5 Billion Over Alleged Economic Losses and Tax Evasion

The Federal Government of Nigeria has filed a lawsuit against Binance, demanding $79.5 billion in damages for alleged economic losses caused by its operations, along with $2 billion in unpaid taxes, according to court documents cited by Reuters on Wednesday.

The Nigerian government has accused Binance, the world’s largest cryptocurrency exchange, of contributing to the country’s currency crisis. In 2024, authorities detained two of the company’s executives, blaming cryptocurrency platforms for fueling volatility in the naira’s exchange rate.

Binance, which is not registered in Nigeria, has yet to respond to the lawsuit but previously stated that it was cooperating with the Federal Inland Revenue Service (FIRS) to address potential tax liabilities.

FIRS claims Binance has a “significant economic presence” in Nigeria and should be subject to corporate income tax. The agency is seeking a court ruling to enforce tax payments for 2022 and 2023, along with a 10% annual penalty on outstanding amounts. Additionally, it is requesting a 26.75% interest rate on unpaid taxes, based on the Central Bank of Nigeria’s lending rate.

Binance was already facing four tax evasion charges in Nigeria following a government crackdown on the crypto industry last year. The allegations include non-payment of value-added tax (VAT), company income tax, failure to file tax returns, and enabling customers to evade taxes through its platform.

The exchange, which denies the charges, ceased all naira transactions and trading in March last year. In addition to the tax case, Binance is also facing separate money laundering charges from Nigeria’s anti-corruption agency.