The Nigerian government accuses the exchange of destabilizing the local currency and tax evasion.
The Nigerian government has filed a lawsuit against Binance, demanding $81.5 billion in compensation. The lawsuit consists of two main elements: $2 billion for unpaid taxes and $79.5 billion for economic damages caused by the alleged collapse of the naira, the local currency.
According to Reuters, the Nigerian Federal Inland Revenue Service (FIRS) claims Binance has maintained a “significant economic presence” in the country but failed to pay the taxes owed for the years 2022 and 2023. The tax authority also demands 26.75% interest on the overdue taxes.
The charges include non-payment of VAT, corporate income tax, failure to file tax returns, and complicity in helping customers evade taxes through its platform.
This case is part of broader tensions, culminating in February 2024 with the detention of two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, accused of tax fraud and money laundering. Later, the FIRS dropped the tax charges against both executives. The case gained international attention, especially regarding the detention conditions of Gambaryan, a U.S. citizen with chronic health issues, who reportedly did not receive adequate medical care.
Diplomatic pressure from the United States, including intervention by Ambassador Richard Mills, led to Gambaryan’s release last October, after nearly seven months in detention. In response to the accusations, Binance suspended all naira trading activities on its platform in March.
