Nigeria’s Federal Government has taken a bold step by filing a lawsuit against cryptocurrency exchange Binance, seeking a whopping $79.5 billion in damages for alleged economic losses and an additional $2 billion in unpaid taxes.
The lawsuit, filed at the Federal High Court in Abuja, accuses Binance of tax evasion, foreign exchange violations, and contributing to the instability of the local currency, the naira.
The Nigerian government claims that Binance has been operating in the country without registering for tax compliance, despite having a “significant economic presence” there.
As a result, the government is demanding tax payments for 2022 and 2023, along with a 10% penalty on unpaid amounts and a 26.75% interest rate on overdue taxes ².But that’s not all – the lawsuit also accuses Binance of facilitating tax evasion through its platform and enabling illicit financial activities that worsened the depreciation of the naira.
The government is seeking to hold Binance responsible for financial losses linked to currency speculation and unauthorized transactions.This lawsuit is the latest development in Nigeria’s ongoing crackdown on cryptocurrency operations in the country. Binance has already been facing four counts of tax evasion and is contesting the charges. The outcome of this lawsuit will be closely watched, as it could have significant implications for the cryptocurrency industry in Nigeria.
