The Federal Government has filed a lawsuit against Binance Holdings Limited at the Federal High Court in Abuja, seeking $79.51 billion and ₦231 million in compensation for alleged economic losses caused by the cryptocurrency exchange’s operations in Nigeria.
The lawsuit, FHC/ABJ/CS/1444/2024, also demands $2.001 billion in income taxes for 2022 and 2023. The Federal Inland Revenue Service (FIRS), in collaboration with the Economic and Financial Crimes Commission (EFCC), accuses Binance of tax evasion, money laundering, and violating Nigeria’s foreign exchange regulations.
The charges include:
Failure to register with the FIRS, which allegedly led to significant financial losses.
Non-payment of taxes for 2022 and 2023, attracting a 10% penalty, plus a 26.75% annual interest rate from January 1, 2023, and January 1, 2024, respectively.
Violation of multiple Nigerian laws, including the Companies Income Tax Act, the FIRS Act of 2007, and the CBN Regulatory Framework for Mobile Money Services.
Binance executives Tigran Gambaryan and Nadeem Anjarwalla are also named in the case. Authorities claim Binance breached the Significant Economic Presence (SEP) Order, which mandates foreign companies earning at least ₦25 million annually from Nigerian digital services to comply with tax regulations.
