The Nigerian government 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, court documents revealed on Wednesday.
Authorities blame Binance, the world’s largest crypto exchange, for the country’s currency challenges, citing its platform as a key driver of naira volatility. The crackdown on the crypto industry led to the detention of two Binance executives in 2024.
Binance, which is not registered in Nigeria, has not yet responded to the lawsuit. However, it previously stated that it was cooperating with Nigeria’s Federal Inland Revenue Service to resolve potential tax liabilities.
According to court filings, the FIRS argues that Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax. The agency is seeking a court order for Binance to pay taxes for 2022 and 2023, along with a 10% annual penalty on unpaid amounts and a 26.75% interest rate based on the Central Bank of Nigeria’s lending rate.
Binance is already facing four counts of tax evasion in Nigeria, including failure to pay value-added tax and company income tax, non-filing of tax returns, and facilitating tax evasion through its platform.
The company, which ceased all naira transactions in March 2024, is also battling separate money laundering charges filed by Nigeria’s anti-corruption agency.
