The Federal Government of Nigeria has filed a lawsuit against cryptocurrency exchange Binance, demanding $79.5 billion in economic damages and $2 billion in back taxes.
According to court documents handled by Reuters this Wednesday, the government alleges that Binance’s operations contributed to Nigeria’s currency depreciation and economic instability.
The lawsuit follows the detention of two Binance executives in 2024 after authorities claimed cryptocurrency platforms were being used to manipulate the naira. Binance, which is not registered in Nigeria, has not immediately responded to the lawsuit but previously stated it was working with the Federal Inland Revenue Service (FIRS) to address potential tax liabilities.
FIRS argues that Binance has a “significant economic presence” in Nigeria and should be subject to corporate income tax. The agency seeks a court ruling compelling Binance to pay taxes for 2022 and 2023, along with a 10% annual penalty on outstanding amounts and a 26.75% interest rate based on the Central Bank of Nigeria’s lending rate.
The crypto exchange was already facing four tax evasion charges, including non-payment of value-added tax, corporate income tax, failure to file tax returns, and aiding users in tax evasion. Binance, which has denied any wrongdoing, halted all naira transactions in March last year.
In addition to the tax case, Binance is also facing separate money laundering charges from Nigeria’s anti-corruption agency.