TLDR:
- Nigeria sues Binance for $81.5 billion – $79.5 billion for economic damages and $2 billion in back taxes
- The lawsuit follows the 2024 detention of Binance executive Tigran Gambaryan in Nigeria for 8 months
- Nigeria’s currency (naira) has fallen 70% against the USD since 2023, with authorities blaming Binance’s operations
- Binance faces trial next week over allegations of facilitating $35 million in money laundering in Nigeria
- Former SEC official predicts the SEC will halt all crypto-related enforcement cases, including dropping its Ripple appeal
The Nigerian government has filed a massive $81.5 billion lawsuit against cryptocurrency exchange Binance, marking a major escalation in the ongoing dispute between the African nation and the world’s largest crypto platform.
Court documents reviewed by Reuters reveal that Nigerian authorities are seeking $79.5 billion in compensation for alleged damage to the country’s economy. The government claims Binance’s operations have contributed to the severe devaluation of Nigeria’s currency, the naira. Additionally, the lawsuit demands $2 billion in alleged unpaid taxes.
The legal action comes after months of tension between Nigerian officials and Binance. In 2024, the cryptocurrency exchange faced multiple regulatory challenges in Nigeria, including tax evasion charges and money laundering accusations.
The situation reached a boiling point when Binance executive Tigran Gambaryan was detained in Nigeria for eight months before securing his release in fall 2024.
According to data from research firm Markets Forces Africa, the naira has experienced a dramatic decline, losing more than 70% of its value against the U.S. dollar since 2023. The Nigeria National Bureau of Statistics reports that the country’s annual inflation rate stood at 24.48% in January 2025.
Unregistered Business
Nigerian authorities assert that Binance has operated as an unregistered business in their country since at least 2019. During this period, the exchange served local users who frequently converted their naira into stablecoins and other cryptocurrencies. However, Binance halted all naira-denominated trading in 2024 following a broader crackdown on cryptocurrency activities in Nigeria.
The Federal Inland Revenue Service (FIRS) of Nigeria is pursuing income taxes from Binance for the years 2022 and 2023. The tax authority seeks to impose a 10% annual penalty on unpaid amounts, plus 26.75% interest on the outstanding tax debt.
Jimada Mohammed Yusuf, a member of the investigating team, stated in an affidavit that Binance’s failure to respond to an official demand notice prompted the current lawsuit.
The legal dispute has taken unexpected turns, with recently released Binance executive Gambaryan alleging that three Nigerian lawmakers demanded a $150 million bribe. He also denied claims that Binance had transferred $26 billion out of Nigeria.
These allegations drew a sharp response from Nigerian Information Minister Mohammed Idris, who accused Gambaryan of spreading false information and revealed that the Nigerian government had rejected a $5 million offer from the United States to secure Gambaryan’s release.
Next week, Binance faces a trial to address accusations from Nigeria’s anti-corruption agency that it facilitated the laundering of more than $35 million through its Nigerian operations. The company disputes these allegations.
Neither Binance nor Nigerian authorities have provided immediate comments on the new lawsuit.
In a separate development affecting the broader cryptocurrency industry, former SEC Office of Internet Enforcement chief John Reed Stark has predicted a halt to U.S. crypto enforcement actions. Stark pointed to recent legal maneuvers in cases against Coinbase and Binance as indicators of the SEC’s changing approach to cryptocurrency regulation.
The SEC and Binance have jointly requested a two-month pause in their enforcement case, while the agency has formed a new Crypto Task Force to potentially resolve its case against Coinbase. These developments suggest a shift in the SEC’s regulatory strategy toward digital assets.
The Nigerian lawsuit against Binance represents one of the largest financial penalties ever sought against a cryptocurrency exchange. The case highlights the complex relationships between digital asset platforms and national governments, particularly in regions experiencing economic challenges and currency instability.
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