The Federal Government has taken legal action against Binance Holdings Limited, a global cryptocurrency exchange, seeking $79.51 billion and N231 million in compensation for alleged economic losses caused by its operations in the country.
The Federal Inland Revenue Service (FIRS) filed the lawsuit at the Federal High Court in Abuja, accusing Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, of failing to register with the FIRS for tax compliance and violating Nigerian financial regulations.
The case, marked FHC/ABJ/CS/1444/2024, also, demands $2.001 billion in unpaid income taxes for 2022 and 2023.
This marks the third legal action against Binance in Nigeria. The FIRS and the Economic and Financial Crimes Commission (EFCC) had earlier charged the company with tax evasion, money laundering, and foreign exchange violations before Justice Emeka Nwite of the Federal High Court in Abuja.
The lawsuit includes financial penalties such as a 10 per cent charge for non-payment of taxes for 2022 and 2023, an annual interest rate of 26.75 per cent based on the Central Bank of Nigeria (CBN) lending rate, and additional fines for Binance’s failure to register its business activities in Nigeria.
The government claimed that Binance has been operating in Nigeria for over six years without proper registration, violating several financial laws.
In an affidavit submitted by Jimada Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser (NSA), Binance executives admitted that the platform had 386,256 active Nigerian users, with a trading volume of $21.6 billion in 2023 and net revenue of $35.4 million from Nigerian transactions.
The NSA further alleged that Binance refused to provide detailed business records covering six years, despite a Federal High Court order instructing the company to disclose the data to the FIRS through the EFCC.
The FIRS is seeking a court declaration that Binance must pay corporate income tax for its Nigerian operations; an order compelling Binance and its executives to file income tax returns for 2022 and 2023, and a payment of $2.001 billion in taxes.
Additionally, the lawsuit demands a 10 per cent annual interest and a 26.75 per cent CBN lending rate until all taxes are fully paid, along with $79.51 billion and N231 million in compensation for the alleged economic damages caused by Binance’s activities in Nigeria.
