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Nigeria’s Federal Inland Revenue Service (FIRS) has escalated its legal action against Binance, seeking $79.5 billion in economic damages, along with over $2 billion in unpaid taxes plus accrued interest, according to court filings
This latest claim far exceeds the initial $10 billion demand previously pursued by Nigerian authorities. The government has accused the cryptocurrency exchange of facilitating the movement of $26 billion in untraceable funds out of Nigeria, exacerbating the country’s ongoing foreign exchange crisis amid efforts to control capital outflows.
Nigeria’s Legal Stand Against Binance
FIRS asserts that Binance has a “significant economic presence” in Nigeria, thereby making it subject to corporate income tax obligations under Nigerian tax laws. While Binance has yet to issue a public response, this lawsuit marks a continuation of Nigeria’s broader regulatory crackdown on the exchange, which has been under scrutiny since last year.
Escalating Legal Tensions
The dispute intensified in February when Nigerian authorities detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on charges of tax evasion and money laundering. Anjarwalla later escaped custody, while Gambaryan was eventually released. Despite this, Binance remains entangled in ongoing money laundering charges brought by Nigerian regulators.
Regulatory Crackdown on Cryptocurrency in Nigeria
As Nigeria tightens regulatory oversight on cryptocurrency exchanges, this case highlights the government’s aggressive stance on financial compliance and anti-money laundering measures. The lawsuit signals Nigeria’s commitment to enforcing tax regulations and curbing illicit financial flows within its growing digital economy.
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