FG seeks court order for Binance to pay $79bn fine, $2bn tax
BY MOTOLANI OSENI
The Federal Government has asked the Federal High Court in Abuja to compel Binance Holdings Limited to pay $79.5 billion in economic loss penalties and $2 billion in outstanding taxes over alleged regulatory breaches and tax evasion in Nigeria.
The lawsuit, filed by the Federal Inland Revenue Service (FIRS), claims Binance failed to register for tax compliance despite operating in Nigeria for over six years and having a significant economic presence. It accuses the cryptocurrency exchange of engaging in unauthorised financial transactions, violating money laundering laws, and deliberately concealing its business activities.
According to court documents, Binance executives Tigran Gambaryan and Nadeem Anjarwalla allegedly admitted during a 2024 meeting with the Securities and Exchange Commission (SEC) that the platform had 386,256 active Nigerian users, facilitating a trading volume of $21.6 billion and generating $35.4 million in revenue in 2023. The government claims Binance failed to remit taxes despite these substantial earnings and continued operating without regulatory approval.
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The FIRS, represented by lead counsel Kanu Agabi (SAN), is seeking a court order compelling Binance to settle its tax liabilities for 2022 and 2023, pay a 10 per cent penalty for non-compliance, and settle a 26.75 per cent annual interest on unpaid taxes based on the Central Bank of Nigeria’s prevailing lending rate. The agency also demands that Binance pay $79.5 billion and N231 million in damages for economic losses allegedly caused by its operations.
During a hearing on February 11, 2025, Justice Inyang Ekwo granted a request for substituted service after Binance’s legal representatives failed to appear, directing that court documents be delivered through alternative means. The case was adjourned to March 3, 2025.
Meanwhile, Binance faces separate charges of tax evasion, money laundering, and foreign exchange violations in another lawsuit brought by the FIRS and the Economic and Financial Crimes Commission (EFCC). The company has denied all allegations as legal proceedings continue.
