Binance, the world’s largest cryptocurrency exchange, is facing a substantial legal challenge in Nigeria, where authorities have filed a lawsuit seeking over $79 billion in damages for alleged economic losses and an additional $2 billion in unpaid back taxes. The lawsuit, reported by Reuters, intensifies the regulatory pressures on Binance in the region.
The Nigerian Federal Inland Revenue Service (FIRS) claims that Binance operated illegally within the country, contributing to significant economic losses. This legal action follows an earlier suit filed by the FIRS in March 2024, accusing Binance of four counts of tax evasion, including failure to pay company income tax and file tax returns.
Two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, have been detained in Nigeria and named as defendants in the ongoing tax evasion case. Their detention underscores the severity of the situation and the Nigerian government’s determination to hold Binance accountable for its alleged financial transgressions.
Binance has not yet issued a public statement in response to the latest lawsuit. The Block has reached out to Binance for comment.
This legal battle in Nigeria adds to Binance’s existing regulatory challenges. In late 2023, the United States Department of Justice (DOJ) sought $4 billion in penalties from Binance to resolve its investigation into alleged violations of the Bank Secrecy Act, money laundering, and fraud.
As part of the settlement with the DOJ, Binance’s then-CEO, Changpeng “CZ” Zhao, pleaded guilty to violating the Bank Secrecy Act, paid a $50 million fine, and stepped down from his leadership role [URL]. Zhao subsequently served a four-month prison sentence and was released in September 2024.
Despite these legal and regulatory hurdles, Binance remains the dominant player in the cryptocurrency exchange market. In January 2025, Binance facilitated $801 billion, representing 34.5% of the total $2.32 trillion in spot trading volume, according to The Block’s Data Dashboard. This demonstrates Binance’s continued influence and market share within the global crypto landscape.
The outcome of the lawsuit in Nigeria could have significant implications for Binance’s operations in Africa and its broader global regulatory strategy. The case highlights the increasing scrutiny that cryptocurrency exchanges face from governments worldwide, particularly regarding tax compliance and economic stability.
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