The Nigerian government has filed a lawsuit against cryptocurrency exchange Binance Holdings Limited, requesting $81.5 billion in damages in a landmark legal event. This amount includes $2 billion for unpaid taxes over the previous two years and $79.5 billion for purported economic losses linked to Binance’s activities in Nigeria. Court documents examined on February 19, 2025, showed that the case was filed in the Federal High Court in Abuja.
According to the Nigerian government, Binance’s operations have seriously harmed the country’s economy. Allegations include contributing to the devaluation of the Nigerian Naira, enabling money laundering, and operating without the required license. According to the Federal Inland Money Service (FIRS), Binance lost a substantial amount of national money because it neglected to register for tax compliance. In accordance with the Central Bank of Nigeria’s current lending rate, the complaint also requests a 26.75% interest rate and a 10% penalty on the overdue taxes for 2022 and 2023.
The lawsuit also alleges that Binance deliberately shrouded its activities in secrecy despite having a significant presence in Nigeria. The violations cited include breaches of Nigeria’s Companies Income Tax (CIT) Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services and the CIT Significant Economic Presence (SEP) Order.
The result of growing hostilities between Binance and Nigerian authorities is this legal action. Tigran Gambaryan and Nadeem Anjarwalla, two Binance executives, were arrested in Nigeria in February 2024 on suspicion of money laundering and operating without the proper license. The money laundering case continued even after the tax evasion charges were dropped in June 2024. After diplomatic efforts and health concerns, Gambaryan was finally freed in October 2024. At the same time, the Securities and Exchange Commission (SEC) of Nigeria has taken the initiative to regulate the cryptocurrency industry. The implementation of a tax structure and licensing specifications for virtual asset service providers are among the initiatives. These steps are intended to improve oversight of digital asset operations and incorporate cryptocurrency transactions into the national tax system.
Binance has not yet made a public statement in response to the case. In the past, the business has insisted that it complies with local regulations and has indicated a desire to work with oversight organizations. The verdict in this case might have a significant impact on Binance’s activities in Nigeria and could establish a standard for the taxation and regulation of cryptocurrency exchanges in the nation.
This court case highlights the difficulties that occur when established regulatory frameworks and quickly changing financial technologies collide. Governments throughout the world are struggling with how to properly regulate cryptocurrencies in order to stop illegal activity and guarantee proper revenue. The outcome of this case could have an impact on regulatory strategies not just in Nigeria but possibly in other jurisdictions facing similar challenges. Nigeria’s legal action against Binance marks a turning point in the nation’s strategy for regulating cryptocurrencies. The case’s verdict will probably have a long-term impact on Nigeria’s digital asset market and could be used as a model by other countries negotiating the challenges of cryptocurrency regulation.
