Government Accuses Crypto Giant of Tax Evasion, Economic Losses, and Regulatory Breaches
The Federal Government of Nigeria has filed a new lawsuit against Binance, demanding the cryptocurrency platform pay a staggering $81.5 billion in penalties and taxes over alleged economic losses and regulatory violations.
The suit, filed at the Federal High Court in Abuja by the Federal Inland Revenue Service (FIRS), accuses Binance of failing to comply with Nigerian tax laws, operating without proper registration, and causing financial instability in the country.
The Breakdown of the Lawsuit
The charges against Binance and its executives, Tigran Gambaryan and Nadeem Anjarwalla, include:
✅ $2.001 billion in unpaid income taxes for 2022 and 2023.
✅ A 10% penalty for tax non-compliance in both years.
✅ A 26.75% interest rate on outstanding payments (equivalent to Nigeria’s Central Bank lending rate).
✅ $79.51 billion and N231 million in damages for alleged economic losses.
This marks the third lawsuit currently pending against Binance in Nigeria, with the Economic and Financial Crimes Commission (EFCC) also pursuing tax evasion, money laundering, and foreign exchange violations charges.
Nigeria’s Case Against Binance
According to the lawsuit, Binance has been operating in Nigeria for over six years without registering with FIRS. The government also claims that Binance:
🔹 Concealed its business activities in Nigeria despite generating significant revenue.
🔹 Violated Nigeria’s Companies Income Tax Act and Money Laundering Act.
🔹 Traded the Nigerian Naira unlawfully on its platform despite earlier claims of delisting the currency.
🔹 Failed to disclose business records for six years, even after a court order mandated cooperation.
The Nigerian authorities allege that Binance had 386,256 active Nigerian users, with a 2023 trading volume of $21.6 billion and net revenue of $35.4 million.
Legal Battle Intensifies
When the case was heard on February 11, 2025, Binance’s legal team was absent, leading the court to approve a motion for substituted service. Justice Inyang Ekwo has set the next hearing date for March 3, 2025.
The lawsuit follows a recent controversy where Binance executive Tigran Gambaryan accused Nigerian officials of bribery and corruption. The Nigerian government has dismissed these claims as misinformation and defamation.
What’s Next?
This lawsuit signals Nigeria’s aggressive crackdown on cryptocurrency platforms that fail to comply with local financial regulations. With Binance facing multiple legal battles, the outcome could have major implications for the crypto industry in Africa.
