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Nigeria has taken another swing and Binance and its ex-executive Tigran Gambaryan, who was detained for eight months.
In a new lawsuit, Nigeria is seeking $79.5 billion in damages for economic losses allegedly caused by the cryptocurrency exchange’s operations in the country. Additionally, the government is demanding $2 billion in back taxes.
Binance is being blamed for Nigeria's ongoing currency crisis, a claim which originally ultimately landed Gambaryan and British Kenyan Nadeem Anjarwalla in Nigerian custody last February.
The pair visited the country to address allegations that the exchange's activity had crashed the country's national currency, the naira.
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Although not registered in Nigeria, Binance previously stated that it was working with Nigeria’s Federal Inland Revenue Service (FIRS) to resolve historical tax obligations.
However, the FIRS contends that Binance has a "significant economic presence" in Nigeria, making it liable for corporate income tax. Authorities are now demanding Binance pay taxes for 2022 and 2023, with an additional 10% annual penalty on unpaid amounts, along with a 26.75% interest rate based on the Central Bank of Nigeria’s lending rate.
This is in addition to the tax evasion charges Binance was already facing, which include non-payment of value-added tax, failure to file tax returns, and allegedly enabling tax evasion through its platform.
Nigeria's Economic and Financial Crime Commission (EFCC) charged the exchange and its two executives with five counts bordering on money laundering as well as tax evasion charges. Gambarayan has pleaded not guilty.
Meanwhile, Nigerian lawmaker Philip Agbese has filed a ₦1 billion lawsuit against Gambaryan, accusing him of defamation. Nigerian officials released Gambaryan after eight months back in October. Gambaryan served as the cryptocurrency exchange's regional manager for Africa.
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The Nigerian court dropped the money laundering charges against Gambaryan on humanitarian grounds due to his deteriorating health. Gambaryan reportedly had suffered from malaria, pneumonia, and tonsilitis, and also experienced complications from a herniated disk, which left him wheelchair-bound. Local authorities said Gambaryan required urgent medical care outside Nigeria.
The dispute stems from social media posts in which Gambaryan alleged that Agbese and two other lawmakers attempted to solicit a $150 million bribe through cryptocurrency transactions.
Agbese’s lawsuit demands financial compensation, a public retraction, and an injunction preventing further dissemination of the claims. The Nigerian government has also dismissed Gambaryan’s accusations, stating that no credible evidence supports his bribery allegations and warning against misinformation.
