The Nigerian government increases legal pressure on Binance, the world’s largest cryptocurrency exchange, demanding $81.5 billion in damages for alleged tax evasion and economic misconduct.
Allegations Against Binance
Nigeria's Federal Inland Revenue Service has accused Binance of failing to pay $2 billion in taxes from 2022 to 2023. The agency is also seeking a 26.75% interest on the unpaid amount. Officials claim Binance facilitated economic losses linked to naira volatility, demanding $79 billion in damages. Two executives were detained to discuss the allegations, but charges were dropped in June. Legal proceedings, however, continue.
Nigeria’s Crackdown on Crypto
Binance is not the only platform under scrutiny. Nigeria tightens regulations on digital assets, accusing exchanges of enabling money laundering and tax evasion. Nigeria's Economic and Financial Crimes Commission previously charged Binance with tax-related violations, including non-payment of VAT and corporate taxes.
Binance’s Response
Binance denies the accusations, stating it doesn't operate a registered entity in Nigeria. The company halted all naira transactions in March 2023, yet authorities argue it has significant economic presence, requiring tax liability. Binance has not publicly responded to the latest claims.
The legal case in Nigeria adds to Binance's global challenges, signaling increasing regulatory scrutiny of crypto platforms worldwide.
