Nigeria has filed a lawsuit seeking $79.5 billion from the government for economic losses caused by $2 billion in cryptocurrency exchange operations and back taxes, according to court documents filed on Wednesday.
Authorities have criticized Binance, the world’s largest cryptocurrency exchange, blaming it for the devaluation of the Nigerian currency. Two executives of the company were arrested in 2024 after local Naira trading websites emerged as popular platforms. Binance, which is not registered in Nigeria, has not yet commented on the situation.
The Nigerian Federal Internal Revenue Service (FIRS) claims that Binance owes corporate income tax due to its significant economic presence in the country. FIRS is seeking income tax payments for 2022 and 2023, along with a 10% annual penalty on the outstanding amounts. Additionally, FIRS is demanding an unpaid tax rate of 26.75% based on the interest rate of the Nigerian central bank.
Nigeria is already facing four counts of tax evasion related to the cryptocurrency industry, including non-payment of VAT, company income tax, failure to file tax returns, and conspiracy to help customers evade taxes through the platform.
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In response to the allegations, Binance announced in March that it had halted all Naira transactions. The company is also facing separate allegations of institutional money laundering, which it has denied.
Source: www.theguardian.com
