Binance Nigerian Tax Case: Talks for Out-of-Court Settlement
Binance is discussing an out-of-court settlement with Nigerian authorities to resolve its ongoing Binance Nigerian tax case. At a hearing before High Court Judge Emeka Nwite in Abuja, Binance counsel Sunday Agaji confirmed talks are under way with the Nigeria Revenue Service. The prosecution lawyer Moses Ideho, Deputy Director at the agency’s Legal Department, also acknowledged the defence approached the service to explore settlement options. The court adjourned proceedings until May 12 for updates.
In February 2025, Nigeria sued Binance, alleging Binance owes $2 billion in back taxes and claiming nearly $79.5 billion in economic losses related to operating without a license. Earlier, Binance’s defence was represented by former executive Tigran Gambaryan, later replaced by Binance’s Nigerian representative Ayodele Omotilewa, who entered a not-guilty plea. The court struck out the names of Gambaryan and another executive who escaped custody, Nadeem Anjarwalla, leaving Binance as the sole defendant.
Separately, the Economic and Financial Crimes Commission (EFCC) charged Binance with money laundering connected to $35.4 million. Overall, this Binance Nigerian tax case remains a key regulatory and legal overhang, with settlement talks potentially reducing near-term uncertainty.
Bearish
This is a still-active legal and regulatory overhang. Nigeria alleges $2 billion in back taxes and claims about $79.5 billion in economic losses, while a separate EFCC matter links Binance to $35.4 million in money-laundering charges. Even with out-of-court settlement talks, traders typically price in prolonged headline risk, potential asset/operations disruptions, and heavier compliance scrutiny for major exchanges.
In the short term, any settlement progress can slightly cool negative sentiment, but until a deal is reached (or charges are clearly narrowed), uncertainty can keep risk premiums elevated. Historically, large exchange legal cases and regulatory escalations—especially involving tax, licensing, or money-laundering allegations—tend to pressure market sentiment around liquidity and custody risk, often leading to cautious positioning rather than aggressive buying.