Binance Faces $81.5bn Lawsuit from Nigerian Government
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Binance has confirmed its awareness of a lawsuit filed by the Nigerian government seeking $81.5bn in damages and unpaid taxes. The legal action, initiated by the Federal Inland Revenue Service (FIRS) at the Federal High Court in Abuja, accuses the cryptocurrency exchange of violating tax laws, failing to register for tax compliance, and contributing to economic distortions.
Responding to an inquiry from The PUNCH, a Binance spokesperson stated, “Noting that we have seen your email. We will reach out to you should there be any updates on this.” The company has yet to provide a detailed response to the allegations.
Allegations of Economic Loss and Unpaid Taxes
The lawsuit, filed under case number FHC/ABJ/CS/1444/2024, names Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, as defendants. The Nigerian government is demanding $79.5bn in damages for alleged economic losses, alongside $2bn in unpaid taxes.
The FIRS is also pursuing penalties, including a 10 per cent annual interest rate on outstanding taxes and a 26.75 per cent charge, aligned with the Central Bank of Nigeria’s lending rate, until the full amount is settled.
This legal action marks a significant escalation in Nigeria’s scrutiny of Binance, which ceased naira transactions in March 2024 amidst increasing regulatory pressure.
Regulatory Scrutiny and Controversial Claims
The case follows accusations made last year by Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, who alleged that Binance facilitated $26bn in transactions from unidentified sources, raising concerns about capital flight and economic stability.
Binance’s Head of Financial Crime Compliance, Tigran Gambaryan, vehemently denied the allegations, accusing Nigerian authorities of misrepresenting trade data and unfairly blaming the exchange for the country’s economic challenges.
“The $26bn figure they keep pushing as ‘mystery money’ escaping Nigeria is complete nonsense,” Gambaryan stated on X (formerly Twitter). “This was simply cumulative trade data for Nigerian users on our platform, which was shared with regulators upon request.”
Judicial Review and Industry Implications
The case is currently under judicial review, and its outcome could have far-reaching implications for cryptocurrency regulation and digital financial services in Nigeria. Binance, a global leader in cryptocurrency trading, faces mounting regulatory challenges as governments worldwide tighten oversight of digital assets and blockchain transactions.
The lawsuit also highlights Nigeria’s growing determination to enforce tax compliance within its digital economy, signalling a potential crackdown on international tech companies operating within its jurisdiction.
As the legal battle unfolds, industry analysts will be watching closely to see how Binance navigates this high-stakes confrontation and what precedent it may set for cryptocurrency regulation in Africa’s largest economy.
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