The Federal Government of Nigeria has launched a lawsuit attempting to compel cryptocurrency exchange Binance to pay $79.5 billion in economic damages attributed to its operations in the country, as well as $2 billion in outstanding taxes.
The government blames Binance, the world’s largest cryptocurrency exchange, for Nigeria’s currency troubles and has detained two of its executives in 2024, after cryptocurrency websites developed as popular means for trading the local naira. Binance, which is not registered in Nigeria, did not reply quickly to a request for comment. It has previously stated that it is collaborating with the Federal Inland Revenue Service (FIRS) to address potential historical tax liabilities.
FIRS said that Binance has a “significant economic presence” in Nigeria and is so subject to corporate income tax. It is seeking a court order requiring Binance to pay income taxes in 2022 and 2023, as well as a 10% annual penalty for unpaid sums.
The revenue agency has also requested a 26.75% interest rate on unpaid taxes, based on the Central Bank of Nigeria’s lending rate. Binance was already facing four accusations of tax evasion in Nigeria following the government’s crackdown on the business last year.
The charges include failure to pay value-added tax, corporate income tax, failure to file tax returns, and involvement in assisting clients in evading taxes via its platform. Binance, which is challenging the claims, stated in March of last year that it would cease all naira transactions and trading. The corporation is also facing separate money laundering accusations from Nigeria’s anti-graft agency.
