The Nigerian Government Sues Binance for $79.5B Penalty
- The federal government of Nigeria has filed a lawsuit against Binance, seeking a $79.5 billion penalty.
- Authorities are also demanding $2 billion in back taxes for the years 2022-2023.
- Binance is accused of tax evasion and operating without the necessary licenses.
In a significant legal development, Nigeria’s federal government has taken action against the cryptocurrency giant, Binance, by initiating a lawsuit that includes a massive $79.5 billion penalty.
This legal dispute arises amidst ongoing regulatory challenges that Binance has been facing in Nigeria.
The Lawsuit Details
According to sources familiar with the case, the lawsuit filed by Nigerian authorities not only seeks the $79.5 billion penalty but also demands $2.001 billion in back taxes for the years 2022 and 2023.
The Federal Inland Revenue Service (FIRS) is adamant about obtaining detailed financial records from Binance, alleging that the exchange has been operating unlawfully, impacting the naira’s depreciation, and failing to meet tax obligations.
The Nigerian government’s accusations against Binance are extensive, including multiple instances of tax evasion and operating without licenses for over six years. Although money laundering charges were initially included, they were later dropped in October 2024.
Binance’s Legal Troubles in Nigeria
The legal challenges for Binance escalated with the arrest of two of its employees, Tigran Gambaryan and Nadeem Anjarwalla, in 2024.
Gambaryan, a former IRS agent, was released with US intervention and has since filed lawsuits against Nigeria. On the other hand, Anjarwalla escaped custody, and his whereabouts remain unknown.
The financial demands in the lawsuit are substantial, with penalties and interests calculated based on the Central Bank of Nigeria’s lending policies. The government is pushing for a 10% annual penalty and a 26.75% interest rate on unpaid taxes, highlighting the seriousness of the claims against Binance.
This lawsuit adds another layer to the complex relationship between Binance and Nigerian authorities. Previous allegations suggested that Binance offered $5 million to settle Gambaryan’s case and address regulatory violations, but Binance has not commented on these claims.
The outcome of this legal battle could have far-reaching implications for Binance’s operations in Nigeria and the broader crypto industry’s compliance and regulatory practices in Africa’s largest economy.
