Binance
Nigeria’s Legal Battle with Binance Intensifies Over Economic Damage, Tax Evasion Claims
Nigeria is locked in a high-stakes legal dispute with cryptocurrency exchange Binance, accusing the platform of causing significant economic harm and engaging in tax evasion. The case has garnered global attention, shedding light on the regulatory challenges faced by crypto exchanges and raising concerns about Nigeria’s financial stability.
The Federal Inland Revenue Service (FIRS) claims that Binance’s operations have adversely affected the valuation of the Nigerian naira, prompting the government to take legal action. This lawsuit underscores growing scrutiny of cryptocurrency platforms and their impact on national economies.
Tensions escalated in February 2024 when Nigerian authorities detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, during what was initially described as a routine discussion. The detentions highlighted the strained relationship between Nigerian regulators and the crypto giant.
In response to mounting pressure, Binance suspended all naira-related trading activities in March 2024. This move came amid government concerns over the platform’s influence on the naira’s value.
Meanwhile, reports emerged about Gambaryan’s alleged denial of adequate medical care during his detention, drawing widespread condemnation from human rights groups and the international community. U.S. Representative Rich McCormick further escalated the issue by introducing a resolution labeling Gambaryan’s detention as a hostage situation, adding strain to diplomatic relations between Nigeria and the United States.
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