Nigeria Slaps Binance with $81.5B Lawsuit Over Tax Fraud and Naira Crash

Nigeria has taken legal action against Binance, demanding a staggering $81.5 billion in damages. The government accuses the crypto giant of evading $2 billion in taxes while allegedly destabilizing the economy, leading to a $79 billion financial loss.

The Federal Inland Revenue Service (FIRS) claims Binance played a major role in the naira’s devaluation, allowing unregulated currency trading that weakened Nigeria’s financial system. Officials insist Binance’s tax violations and unchecked transactions have disrupted businesses and strained people’s finances.

Government Cracks Down: Binance Executives Arrested

Authorities have arrested two senior Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, as part of the ongoing investigation. They face tax fraud and money laundering charges, with officials suspecting Binance facilitated illegal transactions and dodged tax payments. Nigeria’s crackdown signals a broader effort to hold the company accountable for its alleged economic impact.

Binance Hits Back: Halts Trading in Nigeria

In response to mounting legal pressure, Binance has halted all trading activities in Nigeria. The move appears to be a strategic effort to avoid further conflict while demonstrating a willingness to cooperate with authorities.

Despite the suspension, Binance remains locked in a legal battle, fighting to prove it did not commit tax fraud or cause economic damage. Both sides refuse to back down, making this case a landmark moment for Nigeria’s financial and cryptocurrency landscape.

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What’s Next? A Legal Showdown with Global Implications

Global investors are watching closely as Nigeria and Binance continue their courtroom clash. The lawsuit has cast doubt on Binance’s credibility, with trust in the platform eroding. Meanwhile, Binance founder Changpeng Zhao (CZ) recently walked free from a U.S. federal prison after serving a four-month sentence for violating Anti-Money Laundering (AML) regulations.

Will CZ take steps to fix Binance’s policies amid mounting allegations? Or will this legal storm reshape how cryptocurrencies are regulated in Nigeria and beyond? The outcome of this high-stakes battle could set a precedent for the future of crypto compliance worldwide.