Nigeria has initiated legal action against binance/?utm_source=CVJ.Ai&utm_medium=glossary&utm_id=CVJ.AI" target="_blank">Binance, seeking a staggering $79.5 billion in economic damages along with $2 billion in back taxes. The government claims that the operations of the cryptocurrency exchange have led to significant financial losses within the country.

The Nigerian government asserts that Binance’s activities have exacerbated currency issues, which resulted in the detention of two of its executives in 2024. The Federal Inland Revenue Service (FIRS) argues that Binance, despite operating without registration in Nigeria, has a substantial economic presence and is therefore required to pay corporate income tax.

• The FIRS is pursuing a court order for Binance to remit income taxes for the years 2022 and 2023.
• They are also seeking a 10% annual penalty on unpaid amounts and a 26.75% interest rate based on the Central Bank of Nigeria’s lending rate.
• Binance faces four counts of tax evasion, including non-payment of value-added tax and failure to file tax returns.

Amid a broader government crackdown on the cryptocurrency sector, Binance has expressed its intention to contest these charges while halting all transactions in the local naira currency.

📎 Related coverage from: theguardian.com