Nigeria has filed a monumental $81.5 billion lawsuit against Binance, accusing the world’s largest cryptocurrency exchange of tax evasion and destabilizing the naira. The lawsuit includes $2 billion in alleged unpaid taxes and $79 billion in economic damages, highlighting Nigeria’s intensified efforts to regulate cryptocurrency activities that impact its economy.
According to Reuters, Nigeria’s Federal Inland Revenue Service (FIRS) claims Binance maintained a “significant economic presence” in the country but failed to meet tax obligations in 2022 and 2023. The FIRS is also seeking a 26.75% interest on the unpaid taxes and holds Binance accountable for the naira’s steep devaluation against foreign currencies.
Crackdown on Crypto: Nigeria’s Tough Stance
This lawsuit is part of Nigeria’s broader crackdown on cryptocurrency trading, as the government battles inflation and currency devaluation. Nigerian authorities argue that crypto exchanges facilitate capital flight and illicit financial activities, further weakening the naira.
Binance had already been under heavy scrutiny before this legal move. In early 2024, two Binance executives—Tigran Gambaryan and Nadeem Anjarwalla—were detained on charges of tax fraud and money laundering, though the charges were later dropped. The situation escalated when Binance suspended naira transactions in March 2024, responding to mounting regulatory pressure.
Diplomatic Tensions: US Involvement in Binance Saga
The arrest and prolonged detention of Binance’s former Head of Financial Crime Compliance, Tigran Gambaryan, a US citizen, triggered significant diplomatic strain. US lawmakers labeled his detention a hostage situation, demanding his release. After months of international pressure and a resolution from US Representative Rich McCormick, Gambaryan was freed in October 2024.
This case intensified global discussions on cryptocurrency regulations and diplomatic protocols, especially regarding foreign executives detained under contentious circumstances.
Potential Ripple Effects on Global Cryptocurrency Regulation
Nigeria’s lawsuit against Binance may set a precedent for how emerging markets regulate global cryptocurrency platforms. With Nigeria being one of Africa’s largest crypto markets, a successful case could inspire similar actions in other countries grappling with the economic impact of digital currencies.
As legal proceedings unfold, the crypto community and investors are closely monitoring the situation. The outcome could influence how international crypto exchanges operate in emerging markets, potentially prompting stricter compliance with local tax laws and financial regulations.
For more details on this developing story, visit Reuters or follow updates from Nigeria’s Federal Inland Revenue Service.
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