Nigeria Sues Crypto Exchange Binance for $81.5 Billion Following Hostage Crisis: Reuters

Nigeria is suing cryptocurrency exchange Binance for $81.5 billion, alleging the firm’s operations have hobbled its struggling economy, Reuters reported Wednesday. 

The Nigerian government’s lawyers are seeking to compel Binance to pay $79.5 billion for allegedly kneecapping their country’s economy and tanking its official currency, the naira, according to court documents reviewed by Reuters.

They are also aiming to secure $2 billion in back taxes the firm allegedly owes Nigerian authorities, the publication reported.

The lawsuit is the latest of several legal tussles between Nigerian authorities and Binance, most notably including the imprisonment of a Binance executive for much of 2024 in a headline-grabbing hostage crisis.

The crypto exchange has emerged as a popular alternative to Nigeria’s deeply troubled financial system over the past few years. However, Nigerian officials have blamed Binance for their country’s economic woes, hurling money laundering and tax evasion charges at the firm. 

Binance rises as the naira falls 

Binance has operated as an unregistered business in Nigeria since at least 2019, according to Nigerian authorities, serving locals who often are looking to exchange their naira for stablecoins and other cryptocurrencies. 

However, the company halted all naira-denominated trading last year, following a crackdown on the cryptocurrency industry in Nigeria. Nigerian authorities allege the services offered by the exchange, and others like it, have led to the devaluation of the Naira.

The naira has tumbled more than 70% against the U.S. dollar since 2023, data from research firm Markets Forces Africa shows. Meanwhile, Nigeria’s annual inflation rate stood at 24.48% in January, according to the Nigeria National Bureau of Statistics’ data.

Neither Binance nor Nigerian authorities immediately replied to Decrypt‘s request for comment on the lawsuit.   

Binance navigates legal landmines  

Binance has increasingly run into legal issues in Nigeria over the past few years. In 2024, the exchange was hit with four tax evasion charges—all of which it has disputed.

Separately, Binance and some of its personnel fielded money laundering accusations in Nigeria that same year. The allegations led to the arrest and months-long imprisonment of one of the company’s most prominent executives, Tigran Gambaryan, who eventually secured his release from a Nigerian prison last fall. 

Despite Gambaryan’s release, Binance still faces money laundering charges brought against it by Nigeria’s anti-corruption agency. The company will go to trial next week to dispute the agency’s allegations that it facilitated the laundering of more than $35 million through its operations in Nigeria.

Edited by James Rubin