Binance faces a lawsuit by Nigeria for a staggering sum of $81.5 billion, with the accusations centering on financial losses and tax evasion.
In a recent turn of events, the cryptocurrency exchange Binance has found itself at the centre of a storm in Nigeria. Allegations of significant market presence, unpaid taxes, and economic harm have been levelled against the platform, leading to a series of actions from both parties.
Despite Binance denying being a significant market in Nigeria, allegations persist. The governor of the Central Bank of Nigeria, Olayemi Cardoso, claimed that Binance earned a staggering $26 billion from Nigeria alone in 2023. These allegations have prompted Binance to take drastic measures, suspending all Naira deposit and withdrawal services and removing Naira trading pairs from its peer-to-peer (P2P) marketplace.
The Nigerian government has not been idle in its response. Through its Federal Inland Revenue Service, Binance has been sued for approximately $2 billion in unpaid taxes, fines, and interest covering 2022 and 2023, as well as claims for $79.5 billion in damages related to the alleged economic harm caused by Binance's operations. The government considers Binance liable for corporate tax due to its “significant economic presence” in Nigeria despite Binance not being officially registered there.
The ongoing legal action has led to restrictions on Binance’s website within Nigeria, forcing users to resort to VPNs to access the platform. This has resulted in instability and security risks for users. Binance, currently unregistered in any jurisdiction, is evaluating its global headquarters location, a decision that complicates regulatory compliance in Nigeria and other jurisdictions.
However, it is important to note that the Nigerian government's actions against Binance are not a rejection of cryptocurrencies altogether. Rather, they aim to protect investors and enforce regulation on Virtual Asset Service Providers. This is reflective in the new legislation passed by Nigeria in April 2025, which officially recognises cryptocurrencies as digital assets but does not fully regulate them, indicating evolving regulatory efforts that may affect Binance's future in the country.
Binance's troubles in Nigeria are not new. In 2024, two of its officials, Tigran Gambaryan and Nadeem Anjarwalla, were detained by Nigerian authorities. Gambaryan was charged to court, while Anjarwalla managed to escape. Gambaryan's allegations of a $150 million bribe request from Nigerian officials have since been confirmed. A lawmaker named in the bribery allegation, Philip Agbese, has sued Gambaryan for defamation.
The Nigerian government's spokesperson, Bayo Onanuga, has demanded up to $10 billion in reparations and damages from Binance. The platform, however, has denied causing the naira's decline, attributing it instead to the removal of the currency's peg. Binance's total transaction volume in 2023 was $21.6 billion, with the platform only charging a small percentage in transaction fees as its profit.
As the saga continues, Binance has delisted all trading pairs involving the naira on its platform, disabled its P2P exchange in Nigeria, and discontinued naira deposits and withdrawals as a bid to placate Nigerian officials. The future of Binance in Nigeria remains uncertain, with regulatory compliance and legal action ongoing.
- The cryptocurrency industry, specifically Binance, has found itself in the general-news realm, as the platform faces allegations of significant market presence and economic harm in Nigeria.
- Amidst these allegations, the governor of the Central Bank of Nigeria claimed that Binance earned $26 billion from Nigeria alone in 2023, a staggering amount that has sparked concerns about unpaid taxes.
- In response to these allegations and legal action, including a lawsuit for approximately $2 billion in unpaid taxes and damages, Binance has suspended Naira deposit and withdrawal services, removed Naira trading pairs, and delisted all trading pairs involving the naira.
- This industry-specific, high-stakes drama is not without its ties to politics, as two Binance officials were detained by Nigerian authorities in 2024, with one official, Tigran Gambaryan, alleging a $150 million bribe request from Nigerian officials.
- Despite the turmoil, it is crucial to recognize that the Nigerian government's actions against Binance do not signify a blanket rejection of cryptocurrencies. Rather, they aim to protect investors and enforce regulation on Virtual Asset Service Providers, as indicated by the new legislation passed in April 2025.
