The Federal Government of Nigeria has filed a lawsuit against Binance Holdings Limited, demanding $81.5 billion in back taxes and economic damages. The case, brought before the Federal High Court in Abuja, accuses the cryptocurrency exchange of failing to register with Nigeria’s tax authorities and contributing to the depreciation of the naira. Binance Under Fire in Nigeria—Third Lawsuit Adds to Growing Legal Woes According to a Reuters report on Wednesday , the lawsuit, filed by the Federal Inland Revenue Service (FIRS) and marked as FHC/ABJ/CS/1444/2024, seeks $2 billion in unpaid income taxes for 2022 and 2023. Additionally, the government is demanding $79.51 billion in compensation for alleged economic losses linked to Binance’s operations in the country. FG Seeks Court Order for Binance to Pay $79 Billion Economic Loss Fine, $2 Billion in Taxes.R pic.twitter.com/vAfrHsUlzW — Instablog9ja (@instablog9ja) February 19, 2025 Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, are accused of violating Nigerian laws , including failing to comply with tax regulations and operating without proper registration. This case marks the third lawsuit against Binance currently before the court. In a separate legal battle, both the FIRS and the Economic and Financial Crimes Commission (EFCC) have also charged the company with tax evasion, money laundering, and foreign exchange violations. The financial claims in the lawsuit include a 10% penalty for non-payment of taxes, an annual interest rate of 26.75%—the prevailing Central Bank of Nigeria (CBN) lending rate—on outstanding taxes from January 2023 to January 2024, and other statutory penalties. The Nigerian government argues that Binance concealed its business activities despite having a substantial economic presence in the country. The FIRS alleges that Binance violated the Companies Income Tax Act, the FIRS (Establishment) Act 2007, the CBN’s regulatory framework for mobile money services, and the Significant Economic Presence (SEP) Order. The SEP Order, introduced in May 2020, requires foreign digital service providers earning at least ₦25 million annually in Nigeria to pay corporate income tax. Nigeria Claims Binance Operated Illegally for 6 Years—Seeks Billions in Penalties An affidavit from Jimada Yusuf, a member of Nigeria’s Special Investigation Team, states that Binance has operated in the country for over six years without proper registration. During a 2024 meeting with the Securities and Exchange Commission (SEC), Binance executives admitted to having 386,256 active Nigerian users,$21.6 billion trading volume, and $35.4 million in net revenue for 2023. The affidavit accused Binance of lacking required licenses, violating the Money Laundering Act, offering unauthorized financial services, and engaging in currency speculation. Despite claiming to have delisted the naira, the exchange allegedly continued trading it. The filing also claims Binance refused to provide six years worth of business records despite a court order. On Feb. 11, 2025, the Federal High Court, led by Justice Inyang Ekwo, granted a motion for substituted service after Binance’s legal team failed to appear. The case was adjourned to March 3. The FIRS also seeks a ruling that Binance is liable for corporate income tax due to its large economic presence. Nigeria is set to revise regulations to tax crypto trading and digital transactions, aiming to boost government revenue. #Nigeria #CryptoTax https://t.co/CiARf7T14T — Cryptonews.com (@cryptonews) February 18, 2025 This lawsuit adds to Binance’s growing legal troubles in Nigeria, where it now faces four tax-related charges. While Binance has claimed to be cooperating with regulators , it has yet to respond to the latest case. Looking forward, Nigeria’s unprecedented $81.5B claim against Binance raises some questions: When decentralized platforms transcend borders, who bears the cost of their disruption? More importantly, while regulators worldwide struggle to tax and trace crypto’s shadow economy, Nigeria’s aggressive stance—tying exchange activity to currency devaluation—could inspire other inflation-ravaged nations to weaponize tax codes against offshore platforms. The post Nigeria Sues Binance for $79.51B in Economic Damages, Seeks $2B in Back Taxes appeared first on Cryptonews .
