Nigeria Hits Binance With $81.5 Billion Lawsuit Over Tax Evasion and Economic Losses
According to ReutersNigeria has taken legal action against cryptocurrency exchange binary, demanding damages for economic losses of US$79.5 billion and unpaid taxes of US$2 billion. The lawsuit was filed in the Federal High Court of Abuja, accusing tax evasion, violating foreign exchange regulations and undermining the value of the local currency Naira.
The Nigerian authorities are responsible for the country’s financial struggle, especially its monetary issues. In 2024, two Binance executives were detained after reports that cryptocurrency sites, including Binance, were widely used to trade Nigeria’s local currency, Naira. The government believes that this has led to economic problems surrounding the local currency.
Obligation of income tax
Binance previously said it is working with the Federal Inland Tax Service (FIR) to address possible past tax issues. It is worth noting that the Inland Revenue Agency alleges in the document that the binary has a “significant economic presence” in Nigeria and is therefore responsible for corporate income tax.
The agency is seeking a court statement to force Binance to pay taxes for 2022 and 2023 and to fine 10% and 26.75% annually based on loan interest rates from the Nigerian Central Bank.
Binance faces multiple fees
Last year, the government suppressed the government and Binance has faced four charges of tax evasion in Nigeria. These fees include failure to pay VAT, corporate income tax, failure to file tax returns, and allegedly helping clients evade taxes through their platform.
Binance challenged the charges and stopped all transactions and deals in Naira last March. The company also faces separate money laundering charges from Nigeria’s anti-corruption agency, which have been denied.
