Binance Faces $81.5 Billion Lawsuit from Nigerian Government Due to Alleged Economic Damage and Tax Evasion
Spicy Scoop: Nigeria's nailing Binance to the wall over a massive $81.5 billion tax evasion and economic damage row.
Here's the Lowdown:
The Nigerian government has leveled some hefty charges against Binance, the popular cryptocurrency exchange. Allegedly, the platform made a significant impact on the country's currency, the naira, by facilitating large-scale trading, contributing to its decline. The Federal Inland Revenue Service (FIRS) claims that Binance failed to pay taxes for the years 2022 and 2023.
The Fine Print:
The FIRS is seeking corporate income tax payments for the aforementioned years, along with additional penalties. They also demand a 26.75% interest rate on the unpaid amounts, based on Nigeria's lending rate. Binance is accused of tax evasion and non-compliance with the country's tax regulations.
History of Contention:
This isn't Binance's first rodeo with the Nigerian authorities. The exchange has already faced four counts of tax evasion, including failure to pay value-added tax, company income tax, and aiding users in avoiding taxes. Binance halted all naira transactions in March 2024 following a government crackdown. Two executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained, but the charges against them were later dropped. However, Binance still faces separate money laundering charges.
International Pressure:
Gambaryan's detention garnered international attention, particularly from U.S. officials. Reports surfaced about his poor health and the diplomatic effort to secure his release. The U.S. pressure paid off, as money laundering charges against Gambaryan were dropped in October. He was released on October 23, 2024, after seven months in custody.
Binance's Stance:
Binance maintains it's on friendly terms with Nigerian authorities, working to iron out tax issues. The company denies any wrongdoing regarding money laundering cases. The ongoing legal battle between Binance and the Nigerian government will set a substantial precedent for how governments handle unregistered crypto exchanges.
For Those Keen:
The timeline of this saga includes a court ruling in February 2025 allowing FIRS to serve legal documents via email, which Binance later challenged. The trial was initially set for early April but was adjourned to April 30 due to Binance's legal challenges. The case is currently set to continue on that date.
- The Nigerian government is allegedly pursuing Binance, a popular cryptocurrency exchange, over an $81.5 billion tax evasion and economic damage dispute related to the naira.
- Binance is accused of failing to pay taxes for the years 2022 and 2023, and the Federal Inland Revenue Service (FIRS) is demanding corporate income tax payments, penalties, and interest for those years.
- This isn't Binance's first encounter with the Nigerian authorities, as the exchange has previously faced four counts of tax evasion, including failure to pay value-added tax, company income tax, and aiding users in tax evasion.
- In 2024, Binance halted all naira transactions following a government crackdown, and two executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained. However, the charges against them were later dropped.
- The ongoing legal battle between Binance and the Nigerian government will reportedly set a significant precedent for how governments handle unregistered cryptocurrency exchanges, particularly in the realm of crypto regulation and taxes.
- Despite the ongoing legal battle, Binance maintains it's cooperating with Nigerian authorities to resolve tax issues and denies any wrongdoing in regards to money laundering cases.
