Nigeria’s federal government has sued Binance for a $79.5B penalty. The government demands $2B in back taxes for 2022-2023. Binance is accused of tax evasion and operating without a license.

In an unprecedented escalation of legal confrontations, Nigeria’s federal government has launched a new lawsuit against the cryptocurrency giant, Binance, demanding a staggering $79.5 billion penalty.

This legal action comes amid ongoing disputes that have seen Binance entangled in a web of regulatory challenges within the country.

According to sources familiar with the new development, the crux of the lawsuit filed by Nigerian authorities includes not only the $79.5B penalty but also a demand for $2.001 billion in back taxes for the years 2022 and 2023.

The Federal Inland Revenue Service (FIRS) is specifically pressing for detailed financial records from Binance for these years, asserting that the exchange has been operating unlawfully, contributing to the depreciation of the naira, and failing to adhere to tax obligations.

The Nigerian government’s case against Binance is multifaceted, accusing the crypto exchange of multiple counts of tax evasion and operating without the necessary licenses for over six years. The government had also included money laundering charges although it later dropped the charges in October 2024.

Binance legal woes intensified following the arrest of two Binance employees, Tigran Gambaryan and Nadeem Anjarwalla, in 2024.

While Gambaryan, a former IRS agent, was later released through US intervention and has filed humanitarian lawsuits against Nigeria, Anjarwalla managed to escape custody, and his current location remains a mystery.

The financial demands in the new lawsuit are substantial, with additional penalties and interests calculated based on the Central Bank of Nigeria’s lending policies. The government is seeking a 10% annual penalty alongside a 26.75% interest rate on unpaid taxes, showcasing the severity of the financial claims against Binance.

Notably, the new lawsuit adds another layer to the already complex relationship between Binance and Nigerian authorities. Previous allegations have included claims that Binance offered $5 million to settle Gambaryan’s case and address other regulatory violations, though details on this are sparse and Binance has not yet responded to requests for comment on these developments.

The outcome of this lawsuit could have significant implications not only for Binance’s operations in Nigeria but also for the broader crypto industry’s approach to compliance and regulatory engagement in Africa’s largest economy.

The post Nigerian authorities seeking a $79.5B penalty against Binance appeared first on CoinJournal.

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