Nigeria files a lawsuit against Binance for $81.5 billion

The Federal Revenue Service of Nigeria (FIRS) has launched a massive lawsuit against cryptocurrency exchange Binance, demanding compensation in the amount of $81.5 billion. The basis for the claims was unpaid taxes for 2022 and 2023, as well as accusations of destabilizing the national currency, the Nigerian naira.

Tax Claims in Nigeria

According to the FIRS, Binance has a “significant economic presence” in Nigeria but failed to comply with its tax obligations for the specified periods. Tax officials estimated the debt at $2 billion, adding to this amount a penalty of 10% and interest of 26.75% for late payments. However, the bulk of the claim—$79.5 billion—is compensation for economic damages. Authorities say massive trading on the platform caused the naira to depreciate, becoming one of the key causes of financial instability in the country.

History of the conflict with the Nigerian authorities

This is not the first time that Nigeria has clashed with the world’s largest crypto exchange. In February 2024, local authorities arrested two top managers of Binance, accusing the platform of violating financial laws. A few months later, the detainees were released, and the company announced its complete withdrawal from the Nigerian market. Despite this, the authorities’ claims continue to grow, and a new lawsuit may become the most high-profile case in the history of interaction between the state and the crypto industry.

Key points

• $81.5 billion lawsuit: $2 billion for unpaid taxes and $79.5 billion for economic damage.
• Accusations of destabilizing the naira due to transactions on the Binance platform.
• Background: the arrest of managers in 2024 and the company’s departure from Nigeria.
• Lengthy proceedings are expected due to the scale of the claims and the complexity of the evidence.
• The impact on Binance’s reputation and regulation of cryptocurrencies in Africa is questionable.