In a landmark legal move, Nigeria has filed a lawsuit against global cryptocurrency exchange Binance, seeking $79.5 billion in damages for alleged economic losses and $2 billion in unpaid taxes
The case, filed at the Federal High Court in Abuja, accuses Binance of tax evasion, currency manipulation, and contributing to the instability of Nigeria’s local currency, the naira.
Economic Instability
According to court documents, Nigerian authorities claim Binance’s operations have significantly impacted the country’s economy. The Federal Inland Revenue Service (FIRS) alleges that Binance failed to register for tax compliance while operating in Nigeria.
The agency argues that the exchange has a “significant economic presence” in the country and is liable for corporate income tax under Nigerian laws. The FIRS is demanding tax payments for 2022 and 2023, along with a 10% penalty on unpaid amounts. Additionally, the agency seeks a 26.75% interest rate on overdue taxes, based on the Central Bank of Nigeria’s lending rate.
Facilitating Tax Evasion
The lawsuit further accuses Binance of enabling tax evasion through its platform. Authorities claim the exchange violated financial regulations by facilitating unauthorised transactions and currency speculation. These activities allegedly worsened the depreciation of the naira, which has lost over 70% of its value against the U.S. dollar since 2023.
Legal Proceedings
The case, registered as FHC/ABJ/CS/1444/2024, was first heard on February 11, 2025, before Justice Inyang Ekwo. Notably, Binance’s legal representatives were absent during the hearing. The judge granted a motion for substituted service, allowing the court to serve Binance through alternative means after direct attempts failed.
Justice Ekwo ordered the documents to be delivered within seven days and scheduled the next hearing for March 3, 2025. The Nigerian government argues that strict penalties are necessary to prevent further economic harm caused by Binance’s alleged violations.
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Detained Executives and Additional Charges
In 2024, Nigerian authorities detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, as part of a crackdown on cryptocurrency platforms. The government accused Binance of manipulating foreign exchange rates and laundering $35 million. While Gambaryan remains in custody, Anjarwalla reportedly escaped.
Binance also faces separate charges of money laundering and financial misconduct filed by Nigeria’s Economic and Financial Crimes Commission (EFCC). The company has denied these allegations, maintaining that it operates within legal frameworks in all jurisdictions.
Nigeria’s Push for Crypto Regulation
The lawsuit against Binance is part of Nigeria’s broader efforts to regulate the cryptocurrency sector and increase tax compliance. The US Securities and Exchange Commission (SEC) is developing a framework to include eligible crypto transactions in the country’s tax system.
Authorities believe stronger oversight will help generate revenue and prevent currency speculation. Nigeria aims to tax digital asset transactions conducted through regulated exchanges to ensure compliance with financial laws.
Binance’s Response and Ongoing Challenges
Binance has yet to comment on the latest lawsuit but previously stated it is working with Nigerian authorities to address potential tax liabilities. The exchange stopped all naira-denominated transactions in 2024 following Nigeria’s intensified crackdown on the crypto industry.
Despite not being registered in Nigeria, Binance faces four counts of tax evasion, including non-payment of value-added tax, corporate income tax, and failure to file tax returns. The company is also accused of complicity in helping customers evade taxes through its platform.
How is ahead for Binance?
Nigeria’s annual inflation rate stood at 24.48% in January, according to the Nigeria National Bureau of Statistics. The naira’s depreciation and rising inflation have heightened the government’s focus on regulating cryptocurrency platforms, which have become a primary avenue for trading the local currency.
The case against Binance highlights the growing tension between governments and cryptocurrency exchanges worldwide. As Nigeria seeks to hold Binance accountable, the outcome of this lawsuit could set a precedent for how other nations approach crypto regulation and taxation.
In conclusion, Nigeria’s $81.5 billion lawsuit against Binance underscores the country’s determination to address economic instability and enforce tax compliance in the rapidly evolving cryptocurrency sector. The case will be closely watched by regulators, investors, and industry stakeholders globally.
Written By Fazal Ul Vahab C H
