Nigeria has filed a lawsuit to force cryptocurrency exchange Binance to pay $2 billion in back taxes and $79.5 billion for economic losses it claims were brought on by its activities in the nation, according to court documents released on Wednesday.
In 2024, after cryptocurrency websites became the preferred platforms for trading the local naira currency, authorities arrested two of Binance’s executives and blamed the largest cryptocurrency exchange in the world for Nigeria’s currency problems.
It has previously stated that it is working with Nigeria’s Federal Inland Revenue Service to resolve potential historic tax liabilities.
According to documents obtained by reporters, the Inland Revenue Service claims that Binance has a “significant economic presence” in Nigeria and is therefore liable for corporate income tax.
The Inland Revenue Service is seeking a court declaration that Binance pays income taxes for 2022 and 2023 and a 10% annual penalty on unpaid amounts.
Laptops 1000Based on the Central Bank of Nigeria’s lending rate, the FIRS is also asking for a 26.75% interest rate on the unpaid taxes.
Following a government crackdown on the sector last year, Binance was already facing four counts of tax evasion in Nigeria: failure to file tax returns, non-payment of value-added tax, company income tax, and complicity in assisting customers in evading taxes through its platform.
In March of last year, Binance announced that it was ceasing all transactions and trading in naira. The company is also facing individual money laundering charges from Nigeria’s anti-graft agency, which it has denied.
