The Nigerian government has filed an $81.5 billion lawsuit against Binance, accusing the cryptocurrency exchange of tax evasion and influencing the local currency, the naira.
Allegations Against Binance
Nigeria's Federal Inland Revenue Service accuses Binance of failing to pay $2 billion in taxes from 2022 to 2023, also seeking a 26.75% interest rate on the unpaid amount based on the Central Bank of Nigeria's lending rate. Officials claim Binance has caused economic damage through currency speculation, demanding $79 billion in compensation, alleging that Binance's actions led to naira volatility. The lawsuit began with the detention of two Binance executives in February, charges later dropped in June but the case remains open.
Nigeria's Crackdown on Crypto Platforms
Nigeria is tightening regulations on crypto assets, accusing platforms of enabling money laundering and tax evasion. The Economic and Financial Crimes Commission has charged Binance with five counts related to money laundering and four tax-related charges, including non-payment of VAT and corporate income tax, failure to file tax returns, and facilitating tax evasion.
Binance's Response and Global Implications
Binance denies the accusations, asserting it does not operate a registered entity in Nigeria but has taken steps to comply with regulations, including halting naira transactions. Nigerian authorities argue that Binance has a significant economic presence and is liable for taxes. Although Binance has not issued a public statement in response to the lawsuit, the company faces increasing regulatory pressure worldwide. The court case in Nigeria could set a precedent for cryptocurrency regulation globally.
The legal battle in Nigeria increases pressure on Binance, potentially impacting global cryptocurrency regulation.
