Nigeria has filed a lawsuit against Binance, seeking $79.5 billion in economic damages and $2 billion in back taxes. The suit, filed today, accuses Binance of contributing to the naira’s depreciation and engaging in tax evasion.
According to a report by Reuters, Nigerian authorities claim the exchange is a key factor in the naira’s decline, alleging that its platform for trading foreign currency harmed the country’s economy. Last year, two Binance executives were detained as part of a crackdown on cryptocurrency exchanges.
The Federal Inland Revenue Service (FIRS) asserts that Binance has a “significant economic presence” in Nigeria, despite not being officially registered in the country. Officials insist the company must pay corporate income tax for 2022 and 2023, along with a 10% penalty on unpaid amounts. The government is also demanding a 26.75% interest rate on outstanding taxes, based on the Central Bank of Nigeria’s lending rate.
Binance now faces four charges of tax evasion, including failing to file tax returns, neglecting to pay value-added tax (VAT) and corporate tax, and facilitating tax evasion for users.
Previously, Binance stated that it was cooperating with Nigerian regulators to address tax concerns, emphasizing its commitment to complying with local laws. However, the company has yet to comment on the latest lawsuit.
In March 2024, Binance ceased all transactions involving the naira after the Nigerian government intensified its crackdown on cryptocurrency platforms, accusing them of causing financial instability.
In addition to the tax-related lawsuit, Binance is also facing separate money laundering charges from Nigeria’s anti-corruption agency, which the company has denied.