Binance faces significant legal challenges in Nigeria, including a proposed $81 billion fine for economic harm, and two criminal charges for money laundering and tax evasion. The court proceedings are delayed due to Nigeria’s legal system, while the country’s cryptocurrency market is also dwindling.
Binance is entangled in three separate legal proceedings in Nigeria, with the government imposing a staggering $81 billion fine due to alleged economic harm. The trials have faced significant delays, exacerbated by Nigeria’s complex and slow legal system. In addition to the monetary penalty, Binance is contending with two criminal charges: one for money laundering and another for tax evasion, to which it has pleaded not guilty and refrained from commenting on the fine issue.
Last month, Nigeria’s federal government petitioned a judge for the hefty fine, asserting that Binance’s operations negatively impacted the nation’s economy. The accusations include tax evasion amounting to $2 billion in arrears for six years of operation, alongside a $79 billion fine for purported economic impairments. However, the Federal Inland Revenue Service has claimed to only possess revenue figures for 2023, which indicated $35.4 million from Binance’s activities in Nigeria.
Binance’s challenges began after the Nigerian central bank blamed the exchange for destabilizing the naira. High-profile detentions followed, including Binance’s financial crimes unit head, Tigran Gambaryan, who was imprisoned but later released under humanitarian grounds. Despite dropped charges against him, allegations regarding laundering $35.4 million persist, pending further judicial proceedings.
In parallel, the tax evasion case against Binance is now active, as recent hearings commenced with testimonies from agency officials. The presiding judge has rescheduled follow-up hearings, further extending the legal limbo Binance finds itself in amidst declining market conditions for cryptocurrency in Nigeria.
In summary, Binance’s legal issues in Nigeria encompass a monumental $81 billion fine linked to alleged economic misconduct, along with ongoing criminal cases related to money laundering and tax evasion. The protracted nature of these trials reveals the significant challenges posed by Nigeria’s judicial system. As the exchange navigates these legal complexities, the overall state of Nigeria’s cryptocurrency market continues to decline, impacting local stakeholders and government revenue.
Original Source: www.dlnews.com
