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- Nigeria’s $81.5 billion lawsuit against Binance raises serious regulatory and financial concerns for the crypto industry in Africa.
- The case could set a precedent for crypto regulations, impacting investor confidence and digital asset adoption in Nigeria.
After Nigeria demanded $10 billion from cryptocurrency exchange Binance earlier in 2024, as reported by CNF, accusing the platform of profiting from illegal transactions and manipulating the local currency, the legal battle has now escalated.
The Nigerian government has officially filed a lawsuit against Binance, seeking an unprecedented $81.5 billion in damages and unpaid taxes.
Allegations of Economic Disruption and Tax Evasion
According to a Reuters report, the Federal Inland Revenue Service (FIRS) alleges that Binance’s operations have caused $79.5 billion in economic losses, while also demanding $2 billion in back taxes for the years 2022 and 2023.
As shared in a recent tweet by IBC Group, Nigeria is taking legal action against Binance, suing the exchange for $81.5 billion over alleged economic damage and unpaid taxes.
NIGERIA HITS BINANCE WITH AN $81.5B LAWSUIT
Nigeria is coming for Binance, suing the crypto giant for $81.5B over alleged economic damage and unpaid taxes.
The case follows a wild year, including the detention of a Binance exec and a broader crackdown on crypto in Nigeria.… pic.twitter.com/rfocNTPoWi
— IBC Group Official (@ibcgroupio) February 19, 2025
The lawsuit, filed in the Federal High Court in Abuja, accuses Binance of multiple infractions, including tax evasion, foreign exchange violations, and contributing to the depreciation of Nigeria’s currency, the naira.
Authorities claim that Binance failed to register for tax compliance despite maintaining a significant economic presence in Nigeria, thereby violating the Companies Income Tax Act and the Federal Inland Revenue Service Act.
Detention of Binance Executives
This legal action follows the 2024 detention of Binance executives Tigran Gambaryan and Nadeem Anjarwalla. The two were apprehended amid a government crackdown on cryptocurrency platforms, facing allegations of manipulating foreign exchange rates and laundering $35 million.
In response to the lawsuit, Binance has denied all allegations, stating that it is actively collaborating with Nigerian authorities to address concerns. The company also emphasized its commitment to operating within legal frameworksacross all jurisdictions.
Implications for the Cryptocurrency Industry in Nigeria
The ongoing legal disputes have raised concerns within Nigeria’s blockchain and cryptocurrency sectors. Industry professionals warn that this protracted conflict could undermine investor confidence and deter potential investmentsin the country’s burgeoning digital asset market.
The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) has called for a transparent resolution, advocating for a balanced approach that fosters trust and collaboration among stakeholders and international partners.
As the legal proceedings continue, the outcome of this lawsuit could have far-reaching implications for the regulation and adoption of cryptocurrencies in Nigeria and across the African continent.
As of now, BNB Coin is trading at $653.10, reflecting a 0.53% increase in the past day but an 8.99% decline over the past week.
