Binance Slapped With a $81b Lawsuit from Nigeria’s Government

Nigeria’s government has put Binance on blast after it hit the crypto exchange platform with a $81.5 billion lawsuit. Authorities in the country have asked the court to approve the suit, which contains a $79.5 billion penalty and an extra $2 billion in taxes. According to Nigerian authorities, Binance is taking part in illegal operations in the country and has millions in unpaid taxes.

Binance’s Relationship With Nigeria Has Been on A Thin Strand

This isn’t the first time that Nigerian authorities and Binance have gone into a legal battle. Back in 2024, the government of Nigeria accused Binance of helping two company employees, Tigran Gambaryan and Nadeem Anjarwalla, to operate in the country without a license.

Both Anjarwalla and Gambaryan were detained and accused of money laundering and tax evasion among other regulatory violations. Gambaryan’s was secured by US authorities and since then, the former IRS agent filed humanitarian lawsuits against the state of Nigeria. Anjarwalla escaped detention and his whereabouts are unknown to this day.

In a separate lawsuit, Nigeria sued Binance for trying to settle Gambaryan’s case and sweeping it under the rug. According to the prosecutors, Binance offered $5 million.

In 2024, Binance was facing four counts of tax evasion in the country. The ongoing battle between the two parties resulted in Binance putting a halt on all transactions with the Nigerian Naira.

Binance Might Need to Provide Financial Reports

In the latest $81.5 billion lawsuit, Nigerian prosecutors also demand Binance to share its financial reports for 2022 and 2023. The government’s attorneys are asking for a 10% annual penalty along with a 26.5% interest on unpaid taxes.

The interest rate is based on the lending rate of the Central Bank of Nigeria. As for the 10% penalty, the government states that Binance has a significant presence in the country and therefore, subject to a 10% annual tax.

As expected, Binance denied all of the accusations.