Binance Faces $81B Penalty: Nigeria’s Crackdown on Crypto Giants Intensifies

Nigerian authorities have escalated their legal battle against Binance, demanding an astonishing $81 billion in penalties in a new criminal case. This latest move dwarfs the $4.3 billion Binance paid in 2023 for violating U.S. banking laws. But is this a legitimate crackdown, or is Nigeria using Binance as a scapegoat? BitGalactic breaks down the complexities of the case.

The Allegations: Tax Evasion and Illegal Trading

Court documents reviewed by DL News reveal that Nigeria’s Federal Inland Revenue Service accuses Binance of failing to register as a foreign company and dodging tax obligations. The alleged economic loss to the state is estimated at $79.5 billion, with an additional $2 billion tax fine. Authorities further claim Binance engaged in unauthorized foreign exchange trading.

This is the third criminal case Nigerian officials have brought against Binance in a deepening legal dispute that has shaken Africa’s largest crypto market. The exchange has also been accused of facilitating $35 million in money laundering, though it has denied all allegations.

BitGalactic sees this as a potential precedent-setting case. “This is more than just a regulatory spat—it’s a battle over control,” the channel notes. “Nigeria is making an example out of Binance, but it also exposes a deeper struggle between crypto’s decentralized nature and traditional financial systems.”

Trial and the Global Fallout

Binance is set to stand trial on Monday, maintaining a plea of not guilty. The case gained international attention when Nigerian authorities detained Binance executives Tigran Gambaryan and Nadeem Anjarwalla earlier this year. Anjarwalla later escaped custody and will be tried in absentia.

The Nigerian Information Ministry also accused Binance of offering a $5 million bribe to secure Gambaryan’s release—though no formal charges have been filed regarding the claim.

What’s Next for Binance and Crypto in Africa?

With its crypto market under intense scrutiny, Nigeria is sending a message to global exchanges operating in the country. BitGalactic highlights the broader implications: “If Binance is forced to pay a record-breaking penalty, other crypto companies may think twice before entering emerging markets with unclear regulations.”

As the trial looms, the world will be watching to see how Nigeria’s crackdown on Binance shapes the future of cryptocurrency regulation—not just in Africa, but globally. One thing is certain: the battle between decentralized finance and state control is far from over.