Binance is facing three legal challenges in Nigeria, including an $81 billion fine alleged by the government for economic harm, along with separate charges of money laundering and tax evasion. The proceedings have been delayed due to procedural issues, further impacting Nigeria’s declining crypto market. The cases are significant, with the fine amounting to almost one-quarter of Nigeria’s GDP, raising concerns over Binance’s operational legitimacy in the region.
In Nigeria, Binance is embroiled in three legal proceedings that have led to significant scrutiny and potential financial penalties. The Nigerian government is seeking to impose an $81 billion fine on Binance, alleging that the crypto exchange has negatively impacted the country’s economy. This fine is in addition to two ongoing criminal cases involving accusations of money laundering and tax evasion, which Binance has denied.
The first case concerns the government’s assertion that Binance has impaired the economy due to its operations without proper licensing, leading to an extraordinary claim of $81 billion as a penalty. The Federal Inland Revenue Service argues that Binance has caused economic distress by not paying taxes over six years and is demanding $2 billion in back taxes along with a $79 billion additional fine.
In the second case, Nigerian officials accused Binance of contributing to the devaluation of the naira, the nation’s currency. Two Binance executives were detained by the state security for discussions with local officials, resulting in one being released after intervention from U.S. authorities. Nevertheless, allegations persist that Binance laundered $35.4 million.
The third legal issue involves tax evasion charges brought by the FIRS, which coincided with the money laundering allegations. There has been slow progress in these cases due to scheduling conflicts, with the next hearings set for April, further delaying the trial process.
The impact of these legal challenges has been significant on Nigeria’s crypto market, with a reported 38% decline in stablecoin transactions last year amid heightened regulations. Additionally, many users who benefited from Binance’s rewards program have reported frustrations as the platform has recently barred access to its airdrop features for Nigerian customers.
Binance’s legal situation in Nigeria highlights the complexities and challenges faced by cryptocurrency exchanges operating in regions with stringent regulatory frameworks. The potential $81 billion fine underscores the seriousness of the government’s allegations regarding economic harm, compounded by ongoing criminal charges related to money laundering and tax evasion. As these cases unfold, the future of Binance in Nigeria remains uncertain, mirroring broader concerns about the viability of the cryptocurrency market in the country.
Original Source: www.dlnews.com
