Nigeria Sues Binance for $81.5B Over Tax Evasion and Currency Woes

Nigeria has filed a lawsuit against Binance, the world's largest cryptocurrency exchange, seeking $79.5 billion in damages and $2 billion in back taxes. The government alleges that Binance's operations have contributed to the country's currency troubles and has previously detained two of the exchange's executives.

Binance, which is not registered in Nigeria, has not yet commented on the lawsuit. However, the company has acknowledged its engagement with Nigeria's Federal Inland Revenue Service (FIRS) to address potential historical tax liabilities. According to FIRS, Binance has a "significant economic presence" in Nigeria, making it responsible for corporate income tax. The agency is pursuing a legal declaration for Binance to pay income taxes for the years 2022 and 2023, as well as a 10% yearly penalty on the overdue amounts. Additionally, FIRS is demanding a 26.75% interest rate on unpaid taxes, which aligns with the Central Bank of Nigeria's lending rate.

The lawsuit is part of Nigeria's ongoing crackdown on the cryptocurrency industry. Binance is already facing four counts of tax evasion in the country, including accusations of non-payment of value-added tax, company income tax, failure to file tax returns, and aiding customers in tax evasion through its platform. In response to the legal challenges, Binance announced last March that it would cease all transactions and trading involving the Nigerian naira. The company is also contending with separate allegations of money laundering by an anti-graft agency, which it has denied.