Nigeria’s Legal Battle with Binance: A Comprehensive Overview
The Federal Inland Revenue Service (FIRS) of Nigeria has initiated legal proceedings against the cryptocurrency exchange Binance, seeking a staggering $79.5 billion in economic damages. In addition, they are demanding $2 billion plus interest for unpaid taxes. This represents a significant escalation from the earlier demand of $10 billion that the Nigerian government had initially pursued.
Authorities allege that Binance played a role in facilitating the outflow of $26 billion in untraceable funds from Nigeria. This situation has arisen amid a foreign exchange crisis in the country, prompting the government to impose restrictions on capital outflows in a bid to stabilize the economy. In its blog post, Binance responded to these allegations, stating, “FIRS argued that Binance has a significant economic presence in Nigeria but has not fulfilled its tax obligations.” They further elaborated that the agency believes manipulation on the Binance platform has exacerbated the rapid depreciation of the naira, which is currently grappling with rising inflation.
The conflict between Nigeria and Binance has been ongoing since early last year. Notably, in February, two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained by Nigerian authorities. They faced serious charges, including money laundering and tax evasion. Although Gambaryan was later released, Anjarwalla fled the country, leaving Binance still entangled in legal issues related to money laundering. The situation remains fluid as Binance continues to address these allegations.
CoinDesk has reached out to both Binance and Nigeria’s Federal Inland Revenue Service for further comments on this developing story.
