Binance hit with $81bn penalty demand in new Nigerian criminal case

Nigerian authorities have launched a significant legal action against Binance, demanding $81.5 billion in penalties for alleged violations of tax laws and economic damages. This lawsuit, filed on February 19, 2025, marks the third criminal case brought against the cryptocurrency exchange in Nigeria. Prosecutors accuse Binance of operating its trading platform without proper registration and failing to pay taxes as a foreign entity, leading to substantial economic losses estimated at approximately $79.5 billion, along with an additional $2 billion in back taxes.

The Federal Inland Revenue Service (FIRS) claims that Binance's operations have contributed to Nigeria's financial instability and currency issues, particularly affecting the naira. The lawsuit seeks a court order for Binance to pay corporate income taxes for the years 2022 and 2023, along with a 10% annual penalty on unpaid amounts and a 26.75% interest rate on the owed taxes.

This latest legal development follows a tumultuous period for Binance in Nigeria, during which two of its executives were detained amid allegations of money laundering, although charges against one were later dropped. As of now, Binance has not publicly responded to this lawsuit or the broader legal challenges it faces in Nigeria.

written by HexaHome