$BTC $ETH Binance, the world's largest cryptocurrency exchange, is under intense scrutiny in Nigeria as the Federal Inland Revenue Service (FIRS) has filed a lawsuit seeking $79.5 billion in damages for alleged economic losses and an additional $2 billion in back taxes for the years 2022 and 2023.
š Key Allegations:
Unregistered Operations: Binance is accused of operating in Nigeria for over six years without proper registration, allegedly violating the Companies Income Tax Act and other financial regulations.
Significant Economic Presence: Despite lacking a physical office, Binance reportedly had 386,256 active Nigerian users, with a trading volume of $21.6 billion and net revenue of $35.4 million in 2023.
Currency Instability: Authorities claim Binance's platform contributed to the depreciation of the Nigerian naira by facilitating unauthorized currency speculation.
š„ Executive Detentions:
In 2024, Binance executives Tigran Gambaryan and Nadeem Anjarwalla were detained in Nigeria. Gambaryan, a U.S. citizen and head of financial crime compliance, was held for eight months before his release on health and diplomatic grounds. Anjarwalla, a British-Kenyan regional manager for Africa, escaped custody and left the country.
šļø Legal Proceedings:
The tax evasion trial has faced multiple adjournments due to procedural issues, including challenges in serving legal documents to Binance, which is registered offshore. The next court hearing is scheduled for May 17, 2025.
This case underscores the growing regulatory challenges faced by global cryptocurrency platforms operating in emerging markets. As the situation unfolds, it will be crucial to monitor how Binance navigates these legal hurdles and what implications this may have for the broader crypto industry.
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