Nigeria has filed a lawsuit against cryptocurrency exchange Binance, seeking a staggering $81.5 billion in damages and unpaid taxes. The lawsuit alleges that Binance is responsible for economic losses of $79.5 billion and owes an additional $2 billion in unpaid taxes.

The lawsuit comes on the heels of recent allegations made by Binance's head of financial crime, Tigran Gambaryan, who claimed that three Nigerian lawmakers had demanded a $150 million bribe in cryptocurrency during a meeting with company representatives. However, the Nigerian government has strongly denied these accusations, dismissing them as "false and unfounded."

Binance has been under intense scrutiny in Nigeria, facing four counts of tax evasion following a government crackdown on the cryptocurrency industry in 2023. The charges include non-payment of value-added tax (VAT), failure to pay company income tax, neglecting to file tax returns, and aiding customers in evading taxes through its platform.

Authorities also accuse Binance of exacerbating Nigeria's currency crisis, arguing that its platform has become a key channel for speculative trading of the naira. In 2024, Nigerian officials detained two Binance executives as part of a broader crackdown on cryptocurrency platforms.

Binance, which is not registered in Nigeria, has yet to respond to requests for comment. However, the company has previously stated that it is working with Nigeria's Federal Inland Revenue Service (FIRS) to address potential historic tax liabilities. The FIRS argues that Binance has a "significant economic presence" in Nigeria, making it liable for corporate income tax.

The FIRS is seeking a court ruling that would compel Binance to pay income taxes for 2022 and 2023, along with a 10% annual penalty on any unpaid amounts. Additionally, the agency is demanding a 26.75% interest rate on Binance's unpaid taxes, citing the Central Bank of Nigeria's lending rate as the basis for this request.

In response to mounting regulatory pressure, Binance announced in March 2024 that it had ceased all transactions and trading in the naira. However, the company remains entangled in legal battles, including separate money laundering charges filed by Nigeria's anti-corruption agency, allegations that Binance has firmly denied.

The lawsuit marks a significant escalation in the Nigerian government's efforts to regulate the cryptocurrency industry and hold companies accountable for their tax obligations. As the case unfolds, it will be closely watched by the global cryptocurrency community, with potential implications for the industry's future in Nigeria and beyond.

In a broader context, the lawsuit highlights the ongoing challenges faced by governments seeking to regulate the cryptocurrency industry, which often operates in a legal gray area. As the industry continues to evolve, it is likely that we will see more governments taking similar actions to assert their authority and ensure that companies operating in their jurisdictions comply with tax laws and regulations.