Nigeria’s $81.5B Lawsuit Against Binance : A Warning To The Industry ?

Cryptos have often been seen as a challenge for regulators, but rarely has a state hit as hard. Indeed, Nigeria, one of Africa’s most influential economies, has just launched a resounding lawsuit against Binance, the largest crypto exchange platform in the world. The government is demanding 81.5 billion dollars, a colossal sum that, according to Nigerian authorities, corresponds to unpaid taxes and significant economic damages. This case marks a new escalation in the battle between states and the giants of the crypto sector. Amid accusations of tax fraud, detention of employees, and diplomatic pressure, Binance finds itself at the center of a dispute that far exceeds the legal framework.

Nigeria Sues Binance for Billions in Taxes and Economic Damages

The Nigerian state has decided to strike a major blow against Binance, accusing the platform of having a negative impact on the national economy. Thus, the Federal Inland Revenue Service (FIRS), the agency responsible for taxation in Nigeria, is demanding 2 billion dollars in unpaid taxes for the years 2022 and 2023. In addition to this amount, the government is also requesting 79 billion dollars in compensation for the economic damages that the platform allegedly caused to the local currency, the naira.

According to the authorities, Binance allegedly facilitated speculative transactions that contributed to the collapse of the naira on the foreign exchange markets. The FIRS insists that the platform has a “significant economic presence in Nigeria,” which obliges it to comply with the country’s tax obligations. In addition to the amount claimed, interest of 26.75 % on the unpaid taxes is also required.

This is not the first time that Nigeria has taken a frontal attack against Binance. In February 2024, two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, were arrested by local authorities under accusations of tax fraud and money laundering. Binance, in response, suspended all transactions in naira as of March 2024 and asserted its desire to avoid any interference with the Nigerian economy.

A Confrontation of Political and Diplomatic Dimensions

While Nigeria’s judicial offensive against Binance is officially based on economic and tax motives, it is part of a much broader confrontation, where political and diplomatic stakes complicate the case.

The arrest of Binance executives in February 2024 provoked a strong reaction from the United States, particularly due to the prolonged detention of Tigran Gambaryan, an American citizen. Indeed, the American Congress even classified this detention as a “hostage-taking” in July 2024 and intensified pressure on Nigerian authorities. In the face of rising tensions, Nigeria ultimately dropped the money laundering charges in October 2024. This allowed for Gambaryan’s release after seven months of detention.

This kind of showdown poses several strategic questions. For Nigeria, it is about regaining control over its economy and monetary system, severely affected by rampant inflation and speculation on the naira. For its part, Binance faces growing hostility from governments that see in cryptos a tool for financial destabilization. This case could very well set a precedent for other nations looking to regulate the giants of the sector more firmly.

Through this frontal attack against Binance, Nigeria sends a clear message: crypto platforms can no longer operate without considering local tax and economic rules. It remains to be seen whether this judicial offensive will succeed in slowing the rise of an increasingly decentralized ecosystem, or if, on the contrary, it will push these companies to reinvent themselves to escape national regulations.