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Author: Vince Quill, CoinTelegraph; Compilation: Baishui, Bitchain Vision
Nigerian government has filed a $81.5 billion lawsuit against Binance, the world’s largest centralized exchange, to pay $2 billion in taxes and $79 billion in economic losses due to Binance’s alleged depression of local fiat currencies in Nigeria.
According to Reuters,The Federal Taxation Service of Nigeria (FIRS) said Binance has a “significant economic presence” within Nigeria and has tax arrears for 2022 and 2023.
FIRS also reportedly asked the company to pay 26.75% interest on the tax owed and continues to claim that the exchange played an important role in reducing the value of the Nigerian Naira in the forex market.
The West African country has previously charged and detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, alleging that they were alleged of tax fraud and money laundering.FIRS later dropped tax charges against two executives.
Since 2019, the Naira M2 money supply has increased significantly.Source: Trading Economics
Nigeria and Binance fall into high-profile legal dispute
In February 2024, the Nigerian government accidentally detained Gambaryan and Anjarwalla during the company’s routine talks with national regulators.
Binance stopped all Naira trading activities on its platform in March 2024 after the two executives were detained and Nigerian officials complained that traders on the platform had disrupted the stability of the Naira.
Gambaryan’s detention has attracted media attention due to reports that he has suffered from chronic illness but reportedly refused to provide adequate medical services.
In July 2024, U.S. Rep. Rich McCormick introduced a resolution to classify the detention of U.S. citizen Gambaryan as a hostage and demanded the immediate release of the executive.
Gambaryan sat in the court, obviously shocked by the trial process and the harsh prison conditions.Source: Associated Press
U.S. diplomats have stepped up pressure on the Nigerian government to release Binance executives in September 2024, including a call from U.S. Ambassador to Nigeria Richard Mills, to release Gambaryan .
The country’s Economic and Financial Crime Commission dropped money laundering charges against Binance executives in October 2024 after pressure activities.
Gambaryan was released and left Nigeria on October 23, 2024, after he had been in prison for nearly seven months and had a complicated legal battle.
