Nigerian authorities seeking a $79.5B penalty against Binance

• 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
woes
in
Nigeria

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.