Nigeria Sues Binance for $81.5B in Tax Evasion, Currency Violations

Nigeria has taken legal action against cryptocurrency exchange Binance, suing the company for alleged economic losses totaling $79.5 billion and unpaid taxes amounting to $2 billion. The lawsuit, filed at the Federal High Court in Abuja, accuses Binance of tax evasion, foreign exchange violations, and contributing to the instability of the local currency, the naira.

The Federal Inland Revenue Service (FIRS) of Nigeria claims that Binance failed to register for tax compliance while operating in the country. The agency argues that the exchange has a "significant economic presence" in Nigeria and is liable for corporate income tax under the Companies Income Tax Act and the Federal Inland Revenue Service Act. The FIRS is demanding tax payments for 2022 and 2023, along with a 10% penalty on unpaid amounts and a 26.75% interest rate on overdue taxes, based on the Central Bank of Nigeria’s lending rate.

The lawsuit also alleges that Binance violated financial regulations by facilitating tax evasion through its platform. The filing states that the platform could be held responsible for financial losses linked to currency speculation and unauthorized transactions. Authorities claim that the platform enabled illicit financial activities that worsened the depreciation of the naira.

This is a developing news story, and further updates will be provided as more information becomes available.