Nigeria has filed a lawsuit demanding that cryptocurrency exchange Binance pay $81.5 billion in economic damages and back taxes, according to court documents released on Wednesday.
The Nigerian government holds Binance, the world’s largest crypto exchange, responsible for the country’s currency issues. Authorities detained two Binance executives in 2024 after cryptocurrency platforms became popular venues for trading the naira.
Binance, which operates without registration in Nigeria, has not yet responded to requests for comment. The company previously stated that it was collaborating with Nigeria’s Federal Inland Revenue Service (FIRS) to resolve any potential tax liabilities.
According to court filings, the FIRS argues that Binance has a “substantial economic presence” in Nigeria and should therefore be subject to corporate income tax. The agency is seeking a court order to compel Binance to pay taxes for the years 2022 and 2023, along with a 10% annual penalty on the unpaid amounts.
In addition to back taxes, the FIRS is also demanding a 26.75% interest rate on the overdue tax payments, referencing the Central Bank of Nigeria’s lending rate.
This legal action adds to Binance’s ongoing legal troubles in Nigeria. Last year, the company faced charges of tax evasion, including allegations of non-payment of value-added tax, company income tax, failure to submit tax returns, and aiding tax evasion through its platform.
Binance contested these charges and ceased naira-based transactions in March 2024. The company is also facing separate money laundering allegations from Nigeria’s anti-corruption agency, which it has denied.
