Binance Faces $81.5 Billion Lawsuit In Nigeria Over Alleged Economic Harm: Report

Nigeria's Federal Inland Revenue Service (FIRS) has filed a lawsuit against Binance, accusing the cryptocurrency exchange giant of hurting the country's economy through its operations.

Binance has been struggling with legal woes in Nigeria in recent years, with the most controversial being the months-long imprisonment of Tigran Gambaryan, the company's compliance officer.

Nigeria targets Binance anew, claiming economic losses

The FIRS is currently seeking $79.5 billion over alleged economic losses supposedly fueled by Binance's business in the country, as well as $2 billion in back taxes, Reuters reported Wednesday.

Nigerian authorities blamed Binance for the naira's issues as the country's currencies struggled amid surging inflation rates.

According to court documents reviewed by the outlet, Nigeria noted how Binance has a "significant economic presence" in the country and should therefore pay corporate income tax.

Nigeria now wants the court to make Binance pay a 26.75% interest rate on its supposed unpaid taxes.

The lawsuit is just one of several complaints filed by the Nigerian government against the crypto titan after the country kicked off a widespread crackdown on its crypto industry last year.

Binance has yet to release an official statement regarding the latest legal complaint by Nigeria.

Binance's legal woes in Nigeria

In 2024, Binance was slapped with tax evasion charges in the country, including non-payment of value-added tax and allegedly aiding its Nigerian customers to evade taxes through its crypto offerings.

Binance has denied the allegations and is attempting to fight the lawsuit. However, the company had to stop all transactions and trading in the Nigerian naira in March 2024 amid increasing government scrutiny.

There's also the imprisonment of Gambaryan, which caught headlines early in 2024, especially as news emerged that another Binance executive in Nigerian custody "escaped" and was being hunted down.

Gambaryan freed ahead of US elections

Gambaryan was taken into custody earlier in 2024 after flying to the country with Binance Regional Manager for Africa Nadeem Anjarwalla to discuss the exchange's issues with the government.

He was imprisoned while Anjarwalla allegedly fled Nigerian custody, following money laundering charges being filed against them. Gambaryan's family repeatedly asked the U.S. government for help to free the former IRS agent.

In September, crypto users were outraged after footage of Gambaryan on crutches went viral on social media. The footage appeared to show a Nigerian prison guard ignoring Gambaryan's pleas for help with walking to the courtroom.

Gambaryan was freed late in October, and then U.S. President Joe Biden thanked Nigerian leaders for the "humanitarian" release. The White House's exact role in Gambaryan's release remains unclear.

Gambaryan has since accused certain Nigerian officials of demanding the data of Nigerians "to target opposition members" and specifically named one official who allegedly "admitted that he would fabricate evidence to obtain a court order to detain us [Gambaryan and Anjarwalla] for 14 days."