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Nigeria is suing Binance for $81.5 billion for alleged economic losses and unpaid taxes, accusing them of violating financial regulations
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FIRS seeks $2.001 billion in unpaid taxes, penalties, and compensation, alleging Binance concealed operations and failed to comply with tax laws
The Federal Government, through the Federal Inland Revenue Services (FIRS), has filed a lawsuit against cryptocurrency giant Binance Holdings Limited in the Federal High Court in Abuja. The case demands $81.5 billion in compensation and taxes.
FIRS accused Binance of causing major economic losses by failing to adhere to Nigeria’s tax laws. The lawsuit includes a claim for $2.001 billion in unpaid income taxes for 2022 and 2023, along with penalties for non-compliance.
Additionally, the FIRS alleged that Binance and two of its executives concealed their business operations in Nigeria, violating multiple financial regulations.
This marks the third lawsuit against Binance in Nigeria, with additional charges for tax evasion and money laundering pending.
FIRS contends that Binance operated in Nigeria without proper licensing and offered unauthorized financial services. The agency is seeking several legal reliefs, including:
- A declaration that Binance must pay annual corporate income tax for its significant economic presence in Nigeria.
- A requirement for Binance and its executives to file income tax returns for 2022 and 2023.
- An order compelling Binance to pay $2.001 billion in taxes for the specified years.
- Penalties including a 10% annual interest and a 26.75% Central Bank of Nigeria (CBN) lending rate until full payment.
- Compensation of $79.51 billion and ₦231 million for economic losses.
The Federal High Court has scheduled the next hearing for March 3, 2025, as Binance continues to face legal scrutiny over its business practices in Nigeria.