The Nigerian government has intensified its regulatory crackdown on cryptocurrency exchange Binance, demanding $79.5 billion in economic damages. This lawsuit, which includes an additional $2 billion in outstanding taxes, is one of the most aggressive actions taken by any country against a major cryptocurrency platform.
According to Nigerian officials, Binance – the world’s biggest crypto exchange – played a role in tax infractions and the devaluation of the naira.
A Multi-Billion Dollar Showdown Unfolds
Filed by Nigeria’s Federal Inland Revenue Service ( FIRS), the lawsuit claims Binance disregarded tax regulations during the course of its operations in the country. Multiple news sources have disclosed that the agency cited violations under Nigeria’s Companies Income Tax Act and the Federal Inland Revenue Service Act.
Apart from the unpaid taxes of $2 billion, authorities assert Binance’s activities caused economic turmoil, therefore aggravating the devaluation of the naira.
Nigeria suing Binance for US$81.5b in economic losses and back tax – Reuters https://t.co/nTqTNcHN59
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The biggest cryptocurrency exchange in the world by trading volume, Binance is under increasing legal pressure as authorities examine its operations more closely. Nigerian officials charge the platform of facilitating illegal financial activities, which they claim have had negative effects on the economy.
Past Regulatory Crackdowns On Binance
Nigeria had acted against Binance before this as well. Two of the executives of the company were arrested in 2024 on allegations of money laundering and currency manipulation. The arrests highlighted government worries about the impact of the platform on Nigeria’s financial system.
Tigran Gambaryan, one of the executives who had been held by the authorities, was eventually released when the accusations against him were dropped due to health concerns and diplomatic interventions. Nigeria continues to oppose the presence of the exchange, insisting on accountability and financial transparency.
Binance Reacts To Allegations
To handle the tax issues, Binance claims to be actively interacting with Nigerian officials. The exchange has indicated openness to working with authorities even though it has not officially admitted any misconduct. From the United States to Europe, where financial watchdogs are intensifying enforcement actions, the exchange is facing an increasing number of legal challenges worldwide.
The result of this case could set a standard for how exchanges of cryptocurrencies operate in developing nations with strict laws. Should Nigeria’s legal effort be successful, other nations could follow suit and place more rigorous compliance requirements on digital asset platforms.
Global Impact And Future Implications
This lawsuit highlights a growing trend of governments clamping down on unregulated cryptocurrency operations. The legal issues of Binance in Nigeria could have far-reaching effects not only for the business but also for the whole crypto sector. Similar actions taken by regulatory authorities in other countries could result in stricter rules and tougher fines on platforms that don’t follow its laws.
Featured image from Pix4free, chart from TradingView
