Nigeria has filed a lawsuit against Binance, seeking $79.5 billion in economic losses and $2 billion in back taxes.
Why it matters
Nigerian authorities blame Binance, the world’s largest cryptocurrency exchange, for the country’s currency woes.
The lawsuit comes after a 2024 crackdown, during which two Binance executives were detained.
The big picture
Binance is not registered in Nigeria but has been accused of having a “significant economic presence” in the country.
The Federal Inland Revenue Service (FIRS) alleges that Binance is liable for corporate income tax for 2022 and 2023 and is seeking:
- Payment of back taxes.
- A 10% annual penalty on unpaid amounts.
- A 26.75% interest rate based on the Central Bank of Nigeria’s lending rate.
Between the lines
Binance is already facing four counts of tax evasion in Nigeria, including:
- Non-payment of VAT and corporate income tax.
- Failure to file tax returns.
- Allegations of enabling tax evasion through its platform.
The latest
Binance has denied separate money laundering charges brought by Nigeria’s anti-graft agency and is contesting the tax evasion claims.
In March 2024, the company announced it would stop all transactions and trading in the Nigerian naira.
Source: Reuters
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