TLDR
- Nigeria has filed an $81.5 billion lawsuit against Binance, seeking $79.5 billion for economic damages and $2 billion in back taxes, claiming the exchange operated without a license since 2019
- The lawsuit follows a complex history between Nigeria and Binance, including the detention of executive Tigran Gambaryan for eight months in 2024 on money laundering charges
- Nigeria’s currency, the naira, has fallen more than 70% against the US dollar since 2023, with authorities blaming Binance’s operations for contributing to the devaluation
- Binance halted all naira-denominated trading last year following Nigeria’s cryptocurrency industry crackdown
- The case involves allegations of bribery, with Gambaryan claiming three lawmakers demanded a $150 million bribe, while Nigerian officials claim they rejected a $5 million US offer for his release
The Nigerian government has filed a lawsuit against cryptocurrency exchange Binance, demanding $81.5 billion in damages and back taxes. The case, filed in Federal High Court in Abuja, marks a major escalation in the ongoing conflict between the Nigerian authorities and one of the world’s largest cryptocurrency exchanges.
According to court documents, Nigerian officials are seeking $79.5 billion in compensation for alleged economic harm and $2 billion in unpaid taxes. The government claims Binance has operated in the country without proper licensing since 2019, serving local customers who used the platform to exchange Nigerian naira for cryptocurrencies and stablecoins.
The lawsuit comes after a series of clashes between Binance and Nigerian authorities throughout 2024. A key event in this dispute was the detention of Tigran Gambaryan, Binance’s head of crime compliance, who spent eight months in Nigerian custody on money laundering charges before his release in late 2024.
The Nigerian government’s legal action focuses on Binance’s role in the country’s economic challenges. Officials point to the sharp decline of the naira, which has lost more than 70% of its value against the US dollar since 2023. The country’s annual inflation rate reached 24.48% in January, according to data from the Nigeria National Bureau of Statistics.
In response to regulatory pressure, Binance stopped all naira-denominated trading on its platform last year. This decision came as part of a broader crackdown on cryptocurrency operations within Nigeria, where authorities have expressed concerns about the impact of digital currency trading on the local economy.
Inside the Dispute
The Federal Inland Revenue Service (FIRS) is pursuing income taxes from Binance for 2022 and 2023, with additional penalties. The tax authority has included a 10% annual penalty on unpaid amounts and is seeking 26.75% interest on the outstanding tax debt.
The case has been complicated by allegations of corruption and bribery. Gambaryan, after his release, claimed that three Nigerian lawmakers had demanded a $150 million bribe. Nigerian Information Minister Mohammed Idris rejected these allegations and stated that the government had turned down a $5 million offer from the United States to secure Gambaryan’s release.
Earlier in 2024, Nigerian officials had filed four tax evasion charges against Binance, which the company disputed. These charges were later dropped, but the current lawsuit revives many of the same concerns about the company’s tax compliance.
The anti-corruption agency in Nigeria has also brought money laundering charges against Binance. These charges allege that the exchange facilitated the laundering of more than $35 million through its Nigerian operations. The trial for these charges is scheduled to begin next week.
Court documents reveal that Jimada Mohammed Yusuf, a member of the investigating team, stated the lawsuit was filed after Binance failed to respond to an official demand notice from authorities.
Binance’s presence in Nigeria grew as users sought alternatives to the traditional financial system. However, authorities argue that this growth came at a cost to the country’s economic stability and regulatory framework.
The cryptocurrency exchange faces this new legal challenge while already dealing with other regulatory issues globally. In 2024, Binance paid a $1.5 billion fine to the U.S. Department of Justice as part of a larger $4.3 billion penalty for violations including failure to register as a money transmitting business.
As of the latest reports, neither Binance nor Nigerian authorities have provided additional comments on the lawsuit. The case remains pending in the Federal High Court in Abuja.
The legal proceedings continue to develop, with both sides preparing their arguments for what could become a landmark case in cryptocurrency regulation and international business operations in Nigeria.
