Nigeria Files $81.5 Billion Lawsuit Against Binance for Economic Damages

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Nigeria has initiated a lawsuit against the cryptocurrency exchange Binance, demanding $79.5 billion in economic losses and $2 billion in back taxes, according to court documents filed on February 19, 2025. The government alleges that Binance's operations have exacerbated the nation's currency issues, resulting in significant financial harm.

Officials have detained two Binance executives in connection with the investigation, highlighted by claims that the exchange has become a popular platform for trading the Nigerian naira. Binance is currently contesting four charges of tax evasion, which include allegations of non-payment of value-added tax and failure to file tax returns.

According to Nigeria's Federal Inland Revenue Service (FIRS), Binance operates with a substantial economic presence in the country and thus is liable for corporate income tax. FIRS is seeking a court declaration to enforce tax payment for 2022 and 2023, alongside penalties and interest based on the Central Bank of Nigeria's lending rate. As of March 2024, Binance announced it halted all transactions involving the naira, as it continues to address potential tax liabilities in Nigeria.

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Nigeria Sues Binance for Massive Economic Losses and Taxes

Nigeria has filed a lawsuit against cryptocurrency exchange Binance, seeking approximately $79.5 billion in economic damages and an additional $2 billion in back taxes, according to court documents. Authorities claim the exchange's operations have severely impacted the Nigerian economy and contributed to currency instability. Two Binance executives were detained earlier in 2024 amid rising concerns over cryptocurrency trading and its effects on the local naira currency. The lawsuit reflects Nigeria's broader efforts to regulate the cryptocurrency market, which officials argue exacerbates economic challenges. Additionally, Binance operates in Nigeria without official registration, complicating matters for local regulators. As reported by Reuters, the Nigerian government is focusing on addressing economic issues linked to cryptocurrency to protect its financial system from further impact. Binance has yet to respond to requests for comment regarding the lawsuit. The legal action represents a significant escalation in the ongoing tensions between cryptocurrency firms and regulators in various countries.
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