Nigeria Seeks $79 Billion from Binance in Landmark Legal Battle

The Nigerian government, through the Federal Inland Revenue Service (FIRS), has filed a lawsuit against Binance Holdings Limited, seeking a court order for the cryptocurrency exchange to pay $79.5 billion in economic loss fines and $2 billion in back taxes for the years 2022 and 2023. The suit, filed in the Federal High Court in Abuja, also includes demands for a 10% penalty on unpaid taxes and a 26.75% interest rate, corresponding to the Central Bank of Nigeria’s prevailing lending rate.

This legal action follows a series of disputes between Binance and Nigerian authorities. In February 2024, Binance executives Tigran Gambaryan and Nadeem Anjarwalla were detained in Nigeria on allegations of money laundering and operating without proper licensing. While tax evasion charges against them were dropped in June 2024, the money laundering case against Binance continued.

Gambaryan was released in October 2024 due to health concerns and diplomatic interventions.

In parallel, Nigeria’s Securities and Exchange Commission (SEC) has been working to regulate the cryptocurrency industry by introducing a tax framework and licensing requirements for virtual asset service providers. These measures aim to integrate cryptocurrency transactions into the national tax system and enhance oversight of digital asset activities.

The shifting nature of Nigeria’s allegations against Binance raises questions about how the courts will approach the case. While the lawsuit signals the government’s determination to enforce regulatory compliance in the cryptocurrency sector, the evolving charges could undermine its credibility. The court’s decision will not only impact Binance’s future in Nigeria but also set a precedent for the treatment of digital asset