Nigeria sues Binance for $79.5bn over alleged economic losses, tax evasion

• Published On: 20 February 2025 at 20:13

The Nigerian government has filed a lawsuit against cryptocurrency exchange Binance, seeking $79.5 billion in damages for alleged economic losses and an additional $2 billion in back taxes, according to court documents released on Wednesday.

Authorities blame Binance, the world's largest cryptocurrency exchange, for the country's currency issues, citing its platform as a major cause of naira volatility. The crackdown on the cryptocurrency industry resulted in the detention of two Binance executives in 2024.

Binance, which is not registered in Nigeria, has yet to respond to the lawsuit. However, it previously stated that it was working with Nigeria's Federal Inland Revenue Service to resolve any potential tax liabilities.

According to court filings, the FIRS claims that Binance has a "significant economic presence" in Nigeria, making it subject to corporate income tax. The agency is seeking a court order requiring Binance to pay taxes in 2022 and 2023, as well as 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 corporate income tax, failure to file tax returns, and facilitating tax evasion through its platform.

The company, which suspended all naira transactions in March 2024, is also facing separate money laundering charges brought by Nigeria's anti-corruption agency.