The Nigerian government has intensified its legal battle against Binance, accusing the world’s largest cryptocurrency exchange of tax evasion and demanding $81.5 billion in compensation.
Allegations Against Binance
Nigeria’s Federal Inland Revenue Service accuses Binance of failing to pay $2 billion in taxes for 2022-2023. In addition, officials demand $79 billion in compensation, claiming Binance's platform contributed to naira’s volatility. In February, Nigerian authorities detained two Binance executives for discussions, but later dropped tax charges.
Nigeria’s Crackdown on Crypto
The Binance case is part of Nigeria’s broader crackdown on crypto platforms, with many exchanges accused of enabling money laundering and tax evasion. Previously, Nigeria's Economic and Financial Crimes Commission charged Binance with five counts of money laundering and four tax-related offenses.
Binance’s Response
Binance denies all allegations, stating it does not operate as a registered entity in Nigeria. The company emphasizes efforts to comply with local regulations, including the halt of all naira transactions in March 2023.
Binance’s troubles in Nigeria add to its growing legal challenges worldwide, highlighting the importance of crypto exchange regulations in the future.
