Nigeria has filed a landmark lawsuit against Binance, the world’s largest cryptocurrency exchange, seeking a staggering $81.5 billion in damages. The lawsuit demands $79.5 billion for alleged economic losses caused by Binance’s operations in the country, along with an additional $2 billion for unpaid taxes covering the years 2022 and 2023. Nigerian authorities argue that Binance’s activities have significantly contributed to the depreciation of the local currency, the naira, and undermined the nation’s economic stability.
The Federal Inland Revenue Service (FIRS) claims that Binance holds a “significant economic presence” in Nigeria, thus making it liable for corporate income taxes. The lawsuit also demands a 10% annual penalty on the unpaid taxes and a 26.75% interest rate, based on the Central Bank of Nigeria’s lending rate.
This legal action marks a significant escalation in tensions between Binance and Nigerian authorities. In 2024, two Binance executives were detained in Nigeria over allegations of tax evasion and money laundering—charges that Binance has consistently denied. The company has stated that it is working closely with Nigeria’s FIRS to resolve any historical tax issues.
Nigeria’s move comes amid growing concerns over the impact of cryptocurrency trading on its economy. Authorities argue that Binance’s trading platform facilitated speculative trading of the naira, accelerating its depreciation against major currencies. The government believes that regulating cryptocurrency exchanges is critical to stabilizing the national currency and securing its economic future.
The outcome of this lawsuit could set a significant precedent for how other nations regulate and tax digital asset platforms operating within their jurisdictions. If successful, it could lead to stricter oversight of cryptocurrency exchanges worldwide, especially in emerging markets where the economic impact of such platforms can be profound.
Binance has yet to release an official statement on the lawsuit. However, this case will be closely watched by the global crypto community, as its outcome could reshape the regulatory landscape for digital currencies in Africa’s largest economy and beyond.
