Regulatory scrutiny over the cryptocurrency industry continues to evolve as both the US and Nigeria take significant legal actions against major players in the sector. In Nigeria, the government has filed an $81.5 billion lawsuit against Binance, alleging tax evasion and economic damages linked to the devaluation of the naira. Meanwhile, in the US, the Securities and Exchange Commission (SEC) is reportedly prioritizing delays in certain crypto enforcement cases as the regulatory landscape shifts under President Donald Trump’s administration.
Nigeria Files $81.5 Billion Lawsuit Against Binance Over Tax Evasion and Currency Devaluation
The Nigerian government has filed an $81.5 billion lawsuit against Binance, the world’s largest cryptocurrency exchange by trading volume, accusing the platform of tax evasion and destabilizing Nigeria’s local currency. The lawsuit, which includes $2 billion in alleged unpaid taxes and $79 billion in economic damages, is the latest escalation in the country’s crackdown on cryptocurrency trading.
According to a report by Reuters, Nigeria’s Federal Inland Revenue Service (FIRS) contends that Binance has a “significant economic presence” in the country and failed to pay the required taxes in 2022 and 2023. The agency is also demanding a 26.75% interest payment on the allegedly unpaid taxes and holds Binance accountable for the sharp decline in the Nigerian naira’s value against foreign currencies.
The lawsuit represents the culmination of months of tensions between Nigerian authorities and Binance, which escalated last year when the government detained two Binance executives—Tigran Gambaryan and Nadeem Anjarwalla—on charges of tax fraud and money laundering. While those charges were later dropped, Nigeria’s legal pursuit of Binance has intensified, leading to one of the largest financial lawsuits in the country’s history.
Nigeria has taken an increasingly hardline stance against cryptocurrency trading, particularly as the government grapples with inflation and currency devaluation. The central bank and regulatory agencies have repeatedly expressed concerns that cryptocurrency platforms facilitate capital flight and illicit financial activities, exacerbating the naira’s depreciation.
Binance had already faced heightened scrutiny from Nigerian authorities before this lawsuit. In February 2024, Gambaryan and Anjarwalla were detained following what was supposed to be a routine meeting with regulators. Shortly afterward, in March 2024, Binance suspended naira transactions on its platform amid mounting pressure from Nigerian officials, who claimed that traders were using the exchange to manipulate forex rates and devalue the national currency.
The exchange's decision to halt naira trading was a direct response to Nigeria’s increasing hostility toward digital asset platforms, which the government believes undermine its monetary policies.
Diplomatic Pressure and Executive’s Detention
The arrest and prolonged detention of Binance’s former Head of Financial Crime Compliance, Tigran Gambaryan, drew international backlash, particularly from the United States. Gambaryan, a US citizen, was reportedly suffering from chronic health conditions while imprisoned but was allegedly denied adequate medical care. His detention gained widespread media attention, with calls for his release from US officials and human rights organizations.
In July 2024, US Representative Rich McCormick introduced a resolution labeling Gambaryan’s detention as a hostage situation and demanding his immediate release. The diplomatic pressure escalated further in September 2024 when US Ambassador to Nigeria, Richard Mills, called for Gambaryan’s freedom.
Facing mounting international scrutiny, Nigeria’s Economic and Financial Crimes Commission (EFCC) withdrew the money laundering charges against Gambaryan in October 2024. Following nearly seven months behind bars, he was released and departed Nigeria on Oct. 23, 2024.
The Nigerian government’s actions against Binance signal a broader effort to tighten regulations around cryptocurrency trading in the country. Nigeria, which has one of the largest crypto user bases in Africa, has been navigating the fine line between embracing digital assets and imposing stringent regulatory measures to control their impact on the national economy.
The lawsuit against Binance could set a precedent for how Nigeria and other emerging markets approach the regulation of global cryptocurrency exchanges. If successful, the case could pave the way for similar legal actions against other exchanges operating in the country without full compliance with local tax laws and financial regulations.
While Binance has yet to publicly respond to the lawsuit, the company has historically maintained that it adheres to regulatory requirements in all jurisdictions where it operates. However, its battle with Nigerian authorities is far from over, and the outcome of this high-stakes legal clash could reshape the crypto landscape in Africa’s largest economy.
Nigeria’s $81.5 billion lawsuit against Binance represents a critical moment in the ongoing tension between cryptocurrency exchanges and national governments seeking to enforce financial regulations. While the Nigerian government’s accusations of tax evasion and currency destabilization are serious, the case also raises questions about regulatory clarity, international diplomacy, and the future of crypto trading in the country. As the legal proceedings unfold, the outcome could have far-reaching consequences for both Binance and the broader cryptocurrency industry in Nigeria and beyond.
SEC Reportedly Prioritizing Pausing Crypto Enforcement Cases Amid Regulatory Shift
In other news, the United States Securities and Exchange Commission (SEC) is reportedly focusing on delaying cryptocurrency enforcement cases with imminent deadlines, which explains why its lawsuits against major crypto firms like Ripple and Kraken have yet to be put on hold. According to Fox Business reporter Eleanor Terrett, the regulator’s actions may be influenced by ongoing political shifts and the potential appointment of a new SEC chair under President Donald Trump.
Terrett, citing multiple unnamed sources, revealed in a Feb. 19 post on X that the SEC is prioritizing cases with more urgent legal deadlines. Ripple, the blockchain company behind the XRP Ledger, has its next court deadline on April 16, while Kraken, the cryptocurrency exchange, faces a March 31 deadline. Meanwhile, other major crypto platforms like Coinbase and Binance have deadlines on March 14 and April 14, respectively.
According to Terrett, the SEC’s leadership might be expecting Paul Atkins, Trump’s nominee for SEC chair, to be confirmed by that time. She also suggested that in the meantime, several regulatory bodies, including the SEC’s crypto task force, Congress, and the Presidential Working Group on Digital Assets, are working to address the regulatory inconsistencies that led to the SEC’s aggressive approach toward crypto firms.
Under former President Joe Biden, the SEC, alongside the Commodity Futures Trading Commission (CFTC), pursued over 100 lawsuits against crypto companies for alleged violations of securities laws. In 2023 alone, the SEC sued Kraken, accusing the exchange of operating as an unregistered securities broker. The agency also filed a lawsuit against Coinbase, alleging that it had failed to register as a broker, national securities exchange, or clearing agency, thereby evading the disclosure requirements of the securities market.
Additionally, both Kraken and Coinbase faced SEC action for offering crypto staking services, a practice the regulator claimed fell under unregistered securities offerings. Meanwhile, Ripple has been embroiled in a legal battle with the SEC since 2020, with the regulator accusing the company of selling unregistered securities through its XRP token.
Shifting Regulatory Priorities Under Trump
In stark contrast to Biden’s administration, President Donald Trump has signaled a more industry-friendly stance on cryptocurrency regulation. Trump has pledged to reduce enforcement actions against crypto firms and position the US as a global leader in the digital asset space. His nomination of Paul Atkins, a former SEC commissioner known for his pro-business stance, signals this shift in regulatory priorities.
This changing regulatory environment is already having tangible effects. Just ten days after Trump’s second presidential term began, Kraken resumed its staking services for US clients, marking the first time in nearly two years that the exchange was able to offer staking products without regulatory interference.
If the SEC continues pausing or scaling back enforcement cases, the broader crypto industry may witness a more favorable regulatory environment in the coming months. Market participants are closely watching the confirmation process for Paul Atkins, as his leadership at the SEC could signal a significant departure from the stringent policies of the previous administration.
Moreover, Congress and other regulatory bodies are expected to take a more active role in shaping a comprehensive framework for crypto regulation, potentially reducing the ad-hoc enforcement approach that has characterized the SEC’s actions in recent years.
As the legal landscape evolves, crypto firms operating in the US will need to stay informed about shifting policies and potential new compliance requirements. The coming months could be pivotal in determining the long-term trajectory of cryptocurrency regulation in the United States.
