Binance Legal Woes: Nigeria Sues for $81.5B in Back Taxes and Damages

Binance Legal Woes- Nigerian Tax Authorities Demand $81.5B from Binance in Massive Lawsuit

Binance Legal Woes– The government of Nigeria has filed a lawsuit against Binance, accusing the cryptocurrency exchange of owing $2 billion in unpaid taxes and $79 billion in economic damages. The suit claims Binance’s activities contributed to the depreciation of the Nigerian naira, the country’s local fiat currency.

According to the Federal Inland Revenue Service (FIRS), Binance has a “significant economic presence” in Nigeria and owes back taxes for 2022 and 2023. Additionally, FIRS is demanding a 26.75% interest payment on these unpaid taxes. The Nigerian government has also alleged that Binance played a role in lowering the value of the naira in foreign exchange markets, further harming the economy.

Binance Executives Detained

In February 2024, Nigerian authorities detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, during what was meant to be a routine discussion with state regulators. The executives faced allegations of tax fraud and money laundering. However, these charges were later dropped by the Nigerian government.

The detention of Gambaryan attracted significant media attention, especially after reports indicated that he had been denied adequate medical care despite suffering from chronic health conditions. This led to international pressure from U.S. diplomats, including U.S. Representative Rich McCormick, who called for Gambaryan’s immediate release.

Legal Struggles and Diplomatic Efforts

In response to the detention, Binance halted all naira trading on its platform in March 2024. After months of pressure from U.S. diplomats, including from Ambassador Richard Mills, Gambaryan was released from prison in October 2024 and left Nigeria after spending nearly seven months in custody. The money laundering charges were officially dropped by Nigeria’s Economic and Financial Crimes Commission (EFCC) following this diplomatic intervention.

This legal battle highlights the growing tension between major global cryptocurrency platforms and regulatory authorities in emerging markets.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.