Nigeria has filed a lawsuit against Binance, demanding $79.5 billion for economic damages and $2 billion in back taxes. The lawsuit filed today accuses Binance of contributing to Nigeria’s currency financial struggles and tax evasion.
According to Reuter’s report, authorities are pointing fingers at the exchange as the main cause of naira depreciation.
The platform was a go-to place for trading foreign currency, which the government says damaged the economy. Last year, two Binance executives were detained as part of a crackdown on crypto exchanges.
The Federal Inland Revenue Service (FIRS) says Binance has a “significant economic presence” in Nigeria. Even though the company isn’t officially registered there, officials insist it must pay corporate income tax. FIRS wants Binance to pay taxes for 2022 and 2023, plus a 10% penalty on unpaid amounts.
Court documents state that the government is asking for a 26.75% interest rate on unpaid taxes, based on the Central Bank of Nigeria’s lending rate.
Binance now faces four charges of tax evasion. The charges include neglecting to file tax returns, neglecting to pay value-added tax (VAT) and corporate tax, and helping users evade taxes.
Meanwhile, the exchange previously said it is working with regulators in Nigeria to address tax concerns. “We are committed to complying with local regulations and working with regulators,” the firm had said in an earlier statement. However, Binance has made no comments concerning the newest litigation.
In March 2024, Binance announced it was stopping all transactions with the naira. This was after the government ramped up its crackdown on crypto platforms, blaming them for causing financial instability.
The exchange is also facing separate money laundering charges from Nigeria’s anti-corruption agency, which it has denied.
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