February 19, (THEWILL) – The Federal Government of Nigeria (FGN), through the Federal Inland Revenue Service (FIRS), has sued cryptocurrency trading firm, Binance Holdings Limited, to the Federal High Court, seeking compensation of $79.51 billion and N231 million for alleged economic losses caused by the operations of the company.
The suit, numbered FHC/ABJ/CS/1444/2024, filed before Justice Emeka Nwite, alleged that Tigran Gambaryan, the U.S. head of financial crime compliance at Binance and Nadeem Anjarwalla, the exchange British-Kenyan regional manager for Africa, caused Nigeria economic losses by failing to register with the service
It prayed the court to compel the company to pay $2.001 billion in income taxes for 2022 and 2023.
The suit places a 10 percent penalty for non-payment of taxes for 2022 and 2023, a 26.75 percent interest rate (the prevailing Central Bank of Nigeria lending rate) per annum from January 1, 2023, and January 1, 2024, respectively, among other penalties.
Binance is also accused of breaching Nigeria’s Companies Income Tax Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services, and the CIT Significant Economic Presence (SEP) Order, which covers any foreign company deriving at least N25 million annually from digital services in Nigeria.
THEWILL recalls that the Economic and Financial Crimes Commission (EFCC) filed a six-count amended charge of money laundering to the tune of $35.4 million against Binance.
Marked FHC/ABJ/CR/138/2024, the amended charges, dated November 25, 2024, accused the firm of operating without a valid licence, engaging in unauthorised financial activities, and concealing the origin of unlawfully generated revenue.
The charge also alleged that Binance, along with Nadeem Anjarwalla (currently at large) and other unnamed persons, conspired to carry on the business of financial institutions without a valid licence between January 2023 and January 2024.
While accusing Binance and Anjarwalla of conducting financial services outside of authorised sectors between January 2022 and January 2024, the EFCC alleged that the company used its virtual asset services platform to unlawfully negotiate foreign exchange rates in Nigeria without being an authorised dealer, violating Section 29(1)(c) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.
Holding that Binance and others conspired to conceal the origin of proceeds from unlawful activities between January 2023 and January 2024, the anti-graft agency charged the firm with concealing $35.4 million generated as revenue in Nigeria between January 2023 and December 2023, an act deemed to violate Section 18(3) of the Money Laundering Act, 2022.
Justice Nwite adjourned until February 24 and 25, 2025, for the continuation of trial after the defendant entered a not-guilty plea.
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