The Nigerian authorities initiated a lawsuit against the cryptocurrency exchange Binance, seeking compensation totaling $81.5 billion. This was reported by Reuters citing court documents.
In particular, this concerns compensation of $79.5 billion for alleged economic damages and $2 billion for unpaid taxes over two years.
According to the Federal Inland Revenue Service of Nigeria (FIRS), Binance has a 'significant economic presence' in the country and is therefore responsible for corporate income tax.
The agency intends to compel the exchange to pay income tax for the years 2022 and 2023, as well as a 10% annual penalty. FIRS is also requesting an interest rate of 26.75% for these payments based on the relevant central bank rate.
It should be noted that in Nigeria, Binance is accused of tax evasion on four counts, including non-payment of VAT, corporate income tax, failure to submit tax returns, and aiding clients in tax evasion. In a separate case, the company is charged with money laundering and currency speculation totaling up to $34.4 million.
In February 2024, authorities arrested two top executives of the exchange. Nadim Anjarwalla managed to escape to Kenya, while Tigran Gambarayan spent eight months at the Kuje correctional center in Abuja. In October, the Nigerian government dropped all charges against him. The main reasons for discontinuing the prosecution were diplomatic intervention and the degree of the defendant's involvement in the alleged crimes.
Binance Holdings Limited is now the sole defendant in two cases. The company denies all charges.
