FG sues binance for $79.51bn - demands $2bn in unpaid income tax

The Federal Government of Nigeria has filed a lawsuit against cryptocurrency exchange Binance Holdings Limited, demanding $79.51 billion and ₦231 million in compensation for alleged economic losses.

The Federal Inland Revenue Service (FIRS) also seeks an additional $2.001 billion in unpaid income taxes for 2022 and 2023.

The lawsuit, filed at the Federal High Court in Abuja, marks the third legal action against Binance in Nigeria.

The case, identified as FHC/ABJ/CS/1444/2024, accuses Binance and its executives, Tigran Gambaryan and Nadeem Anjarwalla, of failing to register for tax compliance and violating financial regulations.

According to an affidavit by Jimada Yusuf, a Special Investigation Team member from the Office of the National Security Adviser (NSA), Binance executives admitted to having 386,256 active Nigerian users, a trading volume of $21.6 billion in 2023, and net revenue of $35.4 million from Nigerian transactions.

However, the NSA claims that despite a Federal High Court order, Binance refused to provide six years' worth of business records.

The lawsuit seeks a court order mandating Binance to pay corporate income tax, file income tax returns for 2022 and 2023, and settle outstanding tax obligations.

Financial penalties include a 10% annual interest on unpaid taxes and a 26.75% interest rate based on the Central Bank of Nigeria’s (CBN) lending rate.

The Nigerian government also alleges Binance has been operating without proper registration for over six years, violating financial laws.

With mounting legal battles, Binance’s future in Nigeria remains uncertain.