The Nigerian government has launched a massive lawsuit against Binance, the world’s largest cryptocurrency exchange, demanding $79.5 billion in economic damages and an additional $2 billion in back taxes. The lawsuit, filed in a Nigerian court, comes as authorities crack down on cryptocurrency-related activities that they claim have contributed to the country’s ongoing currency crisis.
The government alleges that Binance’s platform has been used to manipulate foreign exchange rates, leading to instability in the value of the Nigerian naira. Nigerian officials also accuse the exchange of tax evasion, arguing that Binance failed to properly report its financial transactions and meet its tax obligations in the country. The lawsuit follows the detention of two Binance executives earlier this year as part of a broader investigation into the company’s operations.
Binance has denied any wrongdoing, stating that it is committed to complying with regulations in all markets where it operates. The company has expressed its willingness to cooperate with Nigeria’s Federal Inland Revenue Service (FIRS) to resolve any outstanding tax issues. However, the exchange is also facing a separate money laundering investigation by Nigeria’s anti-corruption agency.
Nigeria has been tightening its grip on cryptocurrency trading in recent months. In 2023, the country’s central bank lifted a ban on banks processing crypto transactions but introduced stricter regulations to monitor digital asset exchanges. Despite this, authorities continue to view platforms like Binance as a major threat to financial stability, particularly amid rising inflation and foreign exchange challenges.
The outcome of this case could have significant implications for both Nigeria’s regulatory environment and the global cryptocurrency industry. If the government succeeds in its claims, Binance may face substantial financial penalties and further restrictions on its operations in Africa’s largest economy. The lawsuit also raises questions about the broader role of cryptocurrencies in emerging markets and how governments balance financial innovation with economic stability.
