Nigeria has sued Binance in the Federal High Court in Abuja to recover a staggering $81.5 billion allegedly owed by the multinational cryptocurrency giant to the treasury.
Authorities say Binance must pay $79.5 billion for alleged economic damages for unlicensed operations and an additional $2 billion in back taxes and accrued interest, as revealed in court documents filed on 19 February, according to the Guardian.
They have accused Binance, the largest crypto exchange globally, of contributing to the naira’s (national currency) troubles.
This lawsuit marks the latest chapter in the ongoing conflict between the Nigerian government and Binance. In February 2024, Nigeria arrested two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, in a meeting supposedly about legal matters. At first, the government hit them with charges of tax evasion and money laundering, but authorities eventually decided to continue with only four counts of tax evasion, according to the Guardian.
Binance, which operates in 20 countries and has no headquarters, had previously indicated a willingness to collaborate with Nigeria’s Federal Inland Revenue Service (FIRS) to address potential tax obligations.
The FIRS claims that Binance is liable for corporate income taxes because it has established a ‘significant economic presence’ in Nigeria. FIRS seeks a court ruling to enforce tax payments for 2022 and 2023, along with a 10 per cent annual penalty on any unpaid amounts. Additionally, it is pursuing a 26.75 per cent interest rate on these overdue taxes, calculated based on the Central Bank of Nigeria’s lending rate.
Sources:
https://www.binance.com/en/square/post/20549316058689
https://www.theguardian.com/technology/2025/feb/19/nigeria-binance-crypto-lawsuit
https://news.bitcoin.com/binance-faces-massive-81-5-billion-lawsuit-from-nigerian-government