The cryptocurrency exchange Binance reportedly generated over $20 billion in revenue from Nigeria in 2023 alone, yet failed to pay taxes. This was stated by the country’s Minister of Information, Mohammed Idris, to local media.
According to him, the trading platform’s turnover significantly “exceeded the federal budget for health and education, fueling currency speculation and a cost-of-living crisis.”
“Binance is not registered in Nigeria and has never paid any taxes within Nigerian jurisdiction, operating all this time without oversight or any usual safeguards to detect criminal activity,” Idris added.
The minister also commented that Binance’s top executive, Tigran Gambaryan, who is in custody, was detained for facilitating the devaluation of the naira and conducting unregistered business activities in Nigeria.
Idris dismissed any speculation that the government had taken the exchange’s employee hostage. He believes that the case against Binance in Nigeria is proceeding within the law, and the exchange has repeatedly been the subject of investigations in other jurisdictions.
Previously, members of the US Congress and a group of former American officials urged President Joe Biden and Secretary of State Antony Blinken to assist in returning Gambaryan to his homeland.
Earlier, Nigerian authorities accused Binance Holdings Limited, Tigran Gambaryan, and the exchange’s director for West and East Africa, Nadeem Anjarwalla, of tax evasion. They are also charged with laundering at least $21.6 billion and conducting specialized financial activities without a license. The company and its top executives deny the allegations.
Gambaryan was previously denied bail due to fears he might flee. Anjarwalla secretly flew from Nigeria to Kenya at the end of March. However, authorities tracked him down there and are preparing extradition.
The exchange has been required to provide data on all Nigerian users and their transaction history. The platform is also obligated to settle any outstanding tax liabilities.
Binance potentially faces a $10 billion fine.