- Nigeria is suing Binance for $79.5 billion, blaming it for economic losses and unpaid taxes.
- Authorities accuse Binance of tax evasion and money laundering, escalating regulatory pressure.
- Binance denies wrongdoing but faces mounting legal battles, including penalties and interest on unpaid taxes.
Nigeria has launched a monumental legal battle against Binance, demanding a staggering $79.5 billion for what it claims are economic losses inflicted by the exchange’s operations. And that’s not all—the lawsuit also seeks $2 billion in back taxes.
The government, pointing the finger at the world’s largest crypto exchange, alleges that Binance played a major role in destabilizing Nigeria’s currency, the naira. Things escalated in 2024 when two Binance executives were detained, following concerns that crypto platforms were fueling naira speculation.
Binance Under Fire—Again
For context, Binance isn’t even officially registered in Nigeria. But that hasn’t stopped authorities from going after it. The country’s Federal Inland Revenue Service (FIRS) insists the exchange has a “significant economic presence” in Nigeria and is therefore liable for corporate income tax.
The lawsuit demands that Binance settle its 2022 and 2023 tax dues, including:
- Corporate income tax payments
- A 10% penalty on unpaid amounts
- A hefty 26.75% interest rate (tied to Nigeria’s central bank lending rate)
And that’s just the tax side of things. Binance is also tangled up in four counts of tax evasion, with allegations ranging from VAT non-payment to enabling users to dodge taxes through its platform.
The Bigger Picture—Crypto Crackdown & Legal Battles
This lawsuit isn’t happening in isolation. Nigeria has been tightening its grip on crypto regulation, cracking down on exchanges that operate without local compliance. Binance, which had already suspended all naira trading and transactions last March, now finds itself in a high-stakes legal showdown.
On top of the tax case, the exchange is also facing money laundering charges from Nigeria’s anti-graft agency—a separate but equally serious battle that Binance has strongly denied.
What’s Next?
Binance hasn’t issued a formal response to the lawsuit yet, but it previously stated that it was working with Nigerian tax authorities to resolve any potential liabilities. Whether this case ends in a massive payout or a drawn-out legal war, one thing’s clear—Nigeria is making an example of Binance, and the entire crypto industry is watching.
