Nigeria has filed a lawsuit against cryptocurrency exchange Binance, demanding $79.5 billion in damages for alleged economic losses and an additional $2 billion in back taxes, according to court documents seen on Wednesday.
Authorities blame Binance, the world’s largest crypto exchange, for contributing to Nigeria’s currency crisis and have accused it of enabling illicit financial flows.
In 2024, the government detained two Binance executives after crypto platforms became a key marketplace for trading the naira.
Binance previously stated that it was working with Nigeria’s Federal Inland Revenue Service (FIRS) to resolve potential tax liabilities.
The FIRS claims Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax. The agency is seeking a court ruling to compel Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on unpaid amounts.
It is also requesting a 26.75% interest rate, based on the Central Bank of Nigeria’s lending rate.
The company is already facing four counts of tax evasion, including failure to pay value-added tax and corporate income tax, neglecting to file tax returns, and allegedly facilitating tax evasion for its users. Binance, which has denied the allegations, halted all naira transactions and trading in March 2024.
Beyond tax violations, Nigeria’s anti-graft agency has also charged Binance with money laundering, accusations the company has contested.
The lawsuit is part of Nigeria’s broader crackdown on cryptocurrency platforms as the government seeks to regain control over its foreign exchange market.
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