Binance faces a lawsuit by Nigeria for an amount of $81.5 billion, with the country accusing the crypto exchange of causing economic losses and tax evasion.
In recent developments, Binance, the world's largest cryptocurrency exchange, has found itself at the centre of a controversy in Nigeria. The Central Bank of Nigeria's governor, Olayemi Cardoso, alleges that Binance earned an astonishing $26 billion from Nigeria alone in 2023[1]. However, Binance has vehemently denied this claim, asserting that it does not generate significant revenue from the African nation[1].
The accusation comes amidst a broader legal dispute between Binance and the Nigerian government. The Federal Inland Revenue Service has taken legal action against Binance, claiming that the company owes $2 billion in unpaid taxes, fines, and interest covering 2022 and 2023[1]. The argument is that Binance, despite not being registered in Nigeria, has a significant economic presence there.
In response to the allegations, Binance has taken several steps. The company has delisted all trading pairs involving the naira on its platform and disabled its P2P exchange in Nigeria[1]. Furthermore, Binance has also ceased naira deposits and withdrawals.
The controversy has not been limited to financial matters. Two Binance officials, Tigran Gambaryan and Nadeem Anjarwalla, were detained by Nigerian authorities in 2024. Gambaryan was later released and accused Nigerian officials of demanding a $150 million bribe to resolve the issues[1]. Gambaryan has since filed a defamation lawsuit against a Nigerian lawmaker named Philip Agbese, who was implicated in the bribery allegation[1].
The Nigerian government has also initiated a crackdown on P2P cryptocurrency trading in 2024[1]. This move follows Binance's denial that it was a significant market in Nigeria, contradicting the Central Bank's claim[1].
Binance, for its part, has attributed the naira's decline not to its operations, but to the removal of the currency's peg[1]. The company also stated that the total transaction volume on its platform was $21.6 billion in 2023, implying a small percentage as profit[1].
The situation is complex and ongoing, with both parties presenting contrasting views. Binance, currently not registered in any country, is reviewing options for a global headquarters[1]. The future of Binance's operations in Nigeria remains uncertain.
[1] Source: Reuters, Bloomberg, and Binance official statements.
- The controversy surrounding Binance, the world's largest cryptocurrency exchange, in Nigeria has extended beyond financial matters, with two Binance officials, Tigran Gambaryan and Nadeem Anjarwalla, being detained by Nigerian authorities in 2024.
- The Nigerian government has initiated a crackdown on P2P cryptocurrency trading in 2024, a move that follows Binance's denial of being a significant market in Nigeria, contradicting the Central Bank's claim.
- Binance, despite not being registered in Nigeria, is facing a legal dispute with the Nigerian government, with the Federal Inland Revenue Service claiming that the company owes $2 billion in unpaid taxes, fines, and interest covering 2022 and 2023.
- In response to the allegations, Binance has taken several steps, including delisting all trading pairs involving the naira on its platform and disabling its P2P exchange in Nigeria.
- The Nigerian government's allegation that Binance earned an astonishing $26 billion from Nigeria alone in 2023 has been vehemently denied by Binance, asserting that it does not generate significant revenue from the African nation.
