As per a latest report from Reuters, Nigeria has taken legal action against cryptocurrency exchange Binance, demanding $79.5 billion in damages for economic losses and $2 billion in unpaid taxes. The lawsuit, filed in the Federal High Court in Abuja, accuses Binance of tax evasion, violating foreign exchange regulations, and destabilizing the value of the local currency, the naira.
Nigerian authorities are holding Binance responsible for the country’s financial struggles, particularly its currency issues. In 2024, two Binance executives were detained after reports surfaced that cryptocurrency websites, including Binance, were being widely used to trade Nigeria’s local currency, the naira. The government believes that this contributed to the economic issues surrounding the local currency.
Binance Liable For Income Tax
Binance previously stated that it is working with the Federal Inland Revenue Service (FIRS) to address possible past tax issues. Notably, the inland revenue service alleges in documents that Binance has a “significant economic presence” in Nigeria and is therefore liable for corporate income tax.
The agency is seeking a court declaration to compel Binance to pay taxes for 2022 and 2023, along with a 10% annual penalty and 26.75% interest based on the Central Bank of Nigeria’s lending rate.
Binance Faces Multiple Charges
Binance is already facing four charges of tax evasion in Nigeria following a government crackdown last year. The charges include failure to pay value-added tax, company income tax, not filing tax returns, and allegedly helping customers evade taxes through its platform.
Binance, which is challenging the charges, halted all transactions and trading in the naira in March of last year. The company is also facing separate money laundering accusations from Nigeria’s anti-graft agency, which it has denied.
