The Nigerian government has reportedly filed a lawsuit against Binance, demanding $79.5 billion in compensation for “economic losses” and $2 billion in unpaid taxes.
The case, submitted to the Federal High Court in Abuja, Nigeria, alleges that the cryptocurrency exchange operated in Nigeria without a license and failed to adhere to tax regulations.
This comes amid counter – accusation by Tigran Gambaryan, Binance’s Head of Financial Crime Compliance who was released from his 9-month detention in Nigeria in October 2024.
🇳🇬POLITICS | Why the Nigerian Government Likely Released Binance Officer, Tigran Gambaryan
18 U.S. Attorney Generals send a strong plea to the U.S President and Secretary of State to designate Tigran a hostage and take strong diplomatic actionhttps://t.co/S3IjBBKxYt @binance pic.twitter.com/hc4I0Qncoo
— BitKE (@BitcoinKE) October 24, 2024
Gambaryan publicly took to X (formerly Twitter) where he accused Nigerian lawmakers of demanding a staggering $150 million bribe in cryptocurrency to prevent his arrest and prosecution.
🇳🇬REGULATION | @binance Fallout with the Nigerian Government Continues to Unfold Amidst Bribery Accusations
Beyond the bribery scandal, Binance Head of Financial Crime Compliance, @TigranGambaryan, refuted other claims by @cenbank
See details below:https://t.co/bah5C6YItd pic.twitter.com/xMi9LtKABD
— BitKE (@BitcoinKE) February 15, 2025
Nigerian authorities have blamed Binance, the world’s largest cryptocurrency exchange, for the country’s currency challenges, a claim refuted by CEO, Richard Teng, and Gambaryan in his latest X post. In 2024, Gambaryan and then Binance Africa lead, Nadeem Anjarwalla, were detained amid a crackdown on crypto platforms, notably Binance, which had preferred channels for trading the local Naira.
🇳🇬REGULATION | Binance Not to Blame for Exchange Rate, Release Our Employee, Binance CEO Tells Nigeria
“Binance’s P2P team engaged with the local community. What we learned was that due to the lack of official reference FX prices in Nigeria, people in Nigeria, including crypto… pic.twitter.com/OKCet9DCbj
— BitKE (@BitcoinKE) May 8, 2024
Although Binance is not registered in Nigeria, the company has stated that it is cooperating with the Federal Inland Revenue Service (FIRS) to address potential past tax liabilities.
The Federal Inland Revenue Service (FIRS) claims that Binance has a ‘significant economic presence’ in Nigeria, making it liable for corporate income tax. It is seeking a court ruling requiring Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on outstanding amounts.
🇳🇬TAXATION | Nigeria’s Revenue Service, FIRS, To Introduce Comprehensive Taxation Covering Cryptocurrencies
The proposed legislation seeks to simplify tax laws, harmonize revenue collection, and replace outdated tax regulations with contemporary frameworks.
The move comes amid… pic.twitter.com/gB2prTbFys
— BitKE (@BitcoinKE) August 21, 2024
Additionally, FIRS 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 charges of tax evasion in Nigeria following the government crackdown on the crypto industry in 2024. The allegations include non-payment of value-added tax and corporate income tax, failure to file tax returns, and facilitating tax evasion by allowing customers to bypass tax obligations through its platform.
🇳🇬REGULATION | #Nigeria Government Withdraws ML Case Against #Binance Officer But Company Tax Evasion Charges Remain
The money laundering case against @binance would proceed without Gambaryan as he seeks medical attention abroad. https://t.co/ruB4BoZkrK #Tigran pic.twitter.com/39b3pIHirH
— BitKE (@BitcoinKE) October 23, 2024
Binance, which is challenging the charges, announced in March 2024 that it had ceased all transactions and trading in the Naira. The company is also facing separate money laundering charges from an anti-graft agency, which it has denied.
🇳🇬REGULATION | Binance Discontinues All Naira Services Starting in March 2024
Naira deposits ceased after March 5 2024 with withdrawals stopping on March 8 2024.
Authorities have alleged that Binance benefited from ‘illegal transactions’ to the value of $26 billion.… pic.twitter.com/jKZ90I70ie
— BitKE (@BitcoinKE) March 7, 2024
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