Binance Faces $81.5B Lawsuit in Nigeria Over Tax Evasion and Currency Manipulation

Nigeria's Federal Inland Revenue Service (FIRS) has filed a lawsuit against Binance, alleging economic losses of $79.5 billion and back taxes of $2 billion, plus interest. This marks a significant increase from the initial $10 billion claim made by the Nigerian government last year, which accused Binance of facilitating the transfer of $26 billion in untraceable funds out of the country during a foreign exchange crisis.

According to Binance's blog, FIRS contends that the exchange has a substantial economic presence in Nigeria but has not met its tax obligations. The agency also asserts that manipulation on the Binance platform has contributed to the rapid depreciation of the Nigerian naira, which is grappling with inflationary pressures.

Nigeria's pursuit of legal action against Binance began in early 2022. In February of that year, the country detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, and charged them, along with the exchange, with money laundering and tax evasion. Gambaryan was later released, while Anjarwalla fled the country. Binance continues to face money laundering charges from Nigeria.