Nigeria has filed a lawsuit against the cryptocurrency exchange Binance
$7.4B
, seeking $81.5 billion in damages.
Authorities claim the crypto exchange contributed to the country’s economic struggles and failed to pay required taxes, according to court documents reviewed by Reuters on February 19.
The government is demanding $79.5 billion in compensation for what it describes as Binance’s role in destabilizing the national currency, the naira. An additional $2 billion is being sought for unpaid taxes.
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Officials argue that Binance has operated in Nigeria without proper authorization since at least 2019, which allows people to trade their naira for cryptocurrencies like stablecoins.
Nigeria’s financial troubles have worsened in recent years, with the naira losing over 70% of its value against the US dollar since 2023, according to Markets Forces Africa. Inflation has also surged, reaching 24.48% in January, based on data from the National Bureau of Statistics.
Government officials blame platforms like Binance for accelerating the naira’s decline and weakening trust in the financial system.
In response to regulatory pressure, Binance halted all naira-related trading in 2024 as Nigerian authorities intensified their measures on the crypto industry. Officials claim that digital asset exchanges have encouraged illegal financial activities and contributed to the country’s economic instability.
On January 27, the crypto exchange KuCoin settled US charges with a $300 million deal. What happened? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
