The Nigerian government has intensified its legal battle against Binance, seeking substantial damages for economic loss and tax evasion.
Allegations Against Binance
Nigeria’s Federal Inland Revenue Service has accused Binance of failing to pay $2 billion in taxes between 2022 and 2023. The agency is seeking a 26.75% interest rate on the unpaid amount, based on the Central Bank of Nigeria’s lending rate. In addition, officials claim Binance has caused significant economic damage by enabling currency speculation, demanding an extra $79 billion in compensation for the naira's instability. The legal struggle began when two Binance executives were detained. Although charges were dropped in June, the new lawsuit indicates the dispute is ongoing.
Nigeria’s Crackdown on Crypto
Binance is not the only crypto platform under scrutiny in Nigeria. The country is tightening regulations on digital assets, accusing exchanges of enabling money laundering and tax evasion. Previously, Nigeria's Economic and Financial Crimes Commission charged Binance with five counts related to money laundering and four tax-related charges, including the non-payment of VAT and corporate income taxes. Despite the allegations, Binance has stated its willingness to cooperate with authorities over tax issues.
Binance’s Response
Binance has denied the accusations, claiming it does not operate a registered entity in Nigeria. The company emphasized that it has taken steps to comply with regulations, including halting naira transactions in March 2023. However, Nigerian authorities argue that Binance has a significant economic presence in the country, making it liable for corporate taxes. In response to the latest lawsuit, Binance has not issued a public statement.
The lawsuit in Nigeria adds to Binance’s legal troubles. The outcome could set a precedent for future cryptocurrency regulations.
