Nigeria has filed a lawsuit against cryptocurrency exchange Binance, demanding US$79.5 billion in damages for alleged economic losses caused by its operations in the country, along with US$2 billion in back taxes, court documents revealed on February 19.
Authorities have accused Binance, the world’s largest crypto exchange, of exacerbating Nigeria’s currency troubles and detained two of its executives in 2024 after cryptocurrency websites became preferred platforms for trading the local naira currency, Reuters reported.
Binance has previously stated that it is working with Nigeria’s Federal Inland Revenue Service (FIRS) to address potential historic tax liabilities.
The FIRS argues that Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax.
It is seeking a court declaration requiring Binance to pay income taxes for 2022 and 2023, plus a 10% annual penalty on any unpaid amounts.
Additionally, the FIRS is demanding a 26.75% interest rate on the overdue taxes, based on the Central Bank of Nigeria’s lending rate.
Binance was already facing four counts of tax evasion in Nigeria following a government crackdown on the industry last year.
The charges include non-payment of value-added tax and company income tax, failure to file tax returns, and allegedly enabling customers to evade taxes via its platform.
The company, which is contesting the charges, announced in March last year that it had halted all transactions and trading in the naira.
Binance is also facing separate money laundering charges filed by Nigeria’s anti-graft agency, which it has denied.
Featured image credit: edited from freepik
