Binance’s legal troubles in Nigeria have intensified as the country has filed a lawsuit seeking nearly $82 billion from the cryptocurrency exchange. According to court documents cited by Reuters, Nigeria is demanding $79.5 billion in damages for alleged economic losses caused by Binance’s operations, along with $2 billion in back taxes.
The dispute between Nigeria and Binance dates back to 2023 when Binance issued a cease-and-desist notice to an entity operating under the name “Binance Nigeria Limited.” At the time, former Binance CEO Changpeng Zhao dismissed the entity as a fraudulent operation with no affiliation to the exchange. This response came after Nigeria’s financial regulator, the Securities and Exchange Commission (SEC), ordered Binance to cease operations in the country, stating that “Binance Nigeria Limited” was neither registered nor regulated and was therefore illegal.
Additionally, Binance has faced allegations of tax evasion in Nigeria. As cryptocurrency platforms became popular channels for trading the local naira currency, Nigerian authorities accused Binance of currency speculation and manipulating exchange rates, contributing to the naira’s depreciation. In response to these allegations, Nigerian authorities detained two Binance executives in 2024.
Among those detained were Tigran Gambaryan, Binance’s head of financial crime compliance, and Nadeem Anjarwalla, the company’s regional manager for Africa. Both were charged with facilitating money laundering transactions worth over $35 million. However, Anjarwalla managed to escape custody on March 22, 2024, and fled the country. Later that year, in October, Nigeria’s anti-corruption agency dropped a money laundering case against Gambaryan to allow him to seek medical treatment abroad.
As of now, Binance has not publicly responded to Nigeria’s latest lawsuit. However, the exchange has previously stated that it is collaborating with Nigeria’s Federal Inland Revenue Service (FIRS) to address potential past tax obligations. The FIRS asserts that Binance has a “significant economic presence” in Nigeria, making it liable for corporate income tax. The agency is now seeking a court order to compel Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on unpaid amounts. Additionally, the revenue service is requesting a 26.75% interest rate on the unpaid taxes, based on the Central Bank of Nigeria’s lending rate.
Binance was already facing four counts of tax evasion in Nigeria as part of the government’s broader crackdown on the cryptocurrency sector in 2024. The charges include failure to pay value-added tax, corporate income tax, neglecting to file tax returns, and allegedly facilitating tax evasion for its customers through its platform. In response to these mounting legal challenges, Binance announced in March 2024 that it was halting all naira transactions and trading.
Apart from tax-related legal issues, Binance is also facing separate money laundering charges from Nigeria’s anti-graft agency, which the company has denied. Despite the ongoing legal battles, Binance continues to maintain that it is engaging with Nigerian authorities to resolve regulatory concerns while contesting the charges in court.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist