Author: Vince Quill, CoinTelegraph; Translator: Baishui, Golden Finance
The Nigerian government has filed an $81.5 billion lawsuit against Binance, the world's largest centralized exchange, demanding it to pay $2 billion in back taxes and $79 billion in economic losses because Binance allegedly devalued Nigeria's local legal currency.
According to Reuters, Nigeria's Federal Inland Revenue Service (FIRS) said Binance has a "significant economic presence" in Nigeria and owes taxes for 2022 and 2023. FIRS also reportedly demanded that the company pay 26.75 percent interest on the taxes owed and went on to claim that the exchange played a major role in reducing the value of the Nigerian naira in the foreign exchange market.
The West African country previously charged and detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on charges of tax fraud and money laundering. FIRS later dropped the tax charges against the two executives.
Since 2019, the Naira M2 money supply has increased significantly. Source: Trading Economics
In February 2024, the Nigerian government unexpectedly detained Gambaryan and Anjarwalla during routine talks between the company and national regulators.
Binance halted all naira trading activity on its platform in March 2024 after the two executives were detained and Nigerian officials complained that traders on the platform were destabilizing the naira.
Gambaryan’s detention attracted media attention amid reports that he suffers from a chronic illness but was reportedly denied adequate medical care.
In July 2024, U.S. Representative Rich McCormick introduced a resolution that classified the detention of American citizen Gambaryan as a hostage situation and called for the executive's immediate release.
Gambaryan sat in the courtroom, visibly shocked by the trial process and the poor prison conditions. Source: Associated Press
U.S. diplomats have stepped up pressure on the Nigerian government to release the Binance executive in September 2024, including a call from U.S. Ambassador to Nigeria Richard Mills to free Gambaryan .
Following a pressure campaign, the country’s Economic and Financial Crimes Commission dropped money laundering charges against Binance executives in October 2024.
Gambaryan was released from Nigeria on October 23, 2024, after spending nearly seven months in prison and a complex legal battle.
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