The Federal Government through the Federal Inland Revenue Services (FIRS) has taken legal action against leading cryptocurrency platform, Binance Holdings Limited, filing a lawsuit in the Federal High Court in Abuja, demanding $81.5 billion in compensation and taxes.

FIRS alleged that Binance caused significant economic losses in Nigeria by failing to comply with tax regulations and other laws. The suit includes a demand for $2.001 billion in unpaid income taxes for 2022 and 2023, alongside penalties for non-compliance.

The FIRS accused Binance, along with two of its executives, of concealing its business operations in Nigeria and violating multiple Nigerian laws.

This marks the third lawsuit against Binance in Nigeria, with additional charges related to tax evasion and money laundering pending.

The FIRS also claims Binance operated in Nigeria without the necessary licenses and provided unauthorised financial services.

FIRS is seeking the following reliefs in the suit: a “declaration that Binance is liable to pay annual corporate income tax for having a significant economic presence in Nigeria.

“A declaration that Binance and its executives must file income tax returns for 2022 and 2023. An order compelling Binance to pay $2.001 billion in taxes for 2022 and 2023.

“Penalties, including 10% annual interest and a 26.75% Central Bank of Nigeria CBN lending rate, until the taxes are fully paid. Compensation of $79.51 billion and N231 million for economic losses.”

The court has set the next hearing date for March 3, 2025, while Binance faces further scrutiny over its practices in the country