Nigeria turned down a $5 million offer from Binance, which was trying to settle tax issues and secure the release of its detained executive, Tigran Gambaryan. The offer came in August 2024 while the crypto company was negotiating with Nigerian authorities.
But officials weren’t impressed, saying the amount was too small compared to Binance’s earnings in the country. They wanted full tax compliance instead, according to a report from Premium times.
Gambaryan, Binance’s head of financial crimes compliance, was arrested on February 26, 2024, along with the company’s African regional manager, Nadeem Anjarwalla.
Nigeria accused Binance of running illegal operations, helping people dodge financial laws, and disrupting the country’s economy with its peer-to-peer trading system. Officials said Binance’s activities made the currency market unstable, scared away investors, and caused money to flow out of the country through unregulated channels.
In a letter dated February 24, Binance admitted it had operated in Nigeria for six years without proper registration. The company revealed that in 2023 alone, it had 386,256 active Nigerian users and made $35.4 million in net revenue from a massive $21.6 billion in trades. After Gambaryan’s arrest, Nigeria demanded that Binance pay four years’ worth of taxes (from 2020 to 2023) plus 10% annual interest.
At a meeting in August 2024, Binance estimated its total Nigerian revenue over four years at $140 million and calculated its tax liability at around $7 million. It then offered to pay $5 million upfront but only if Nigeria released Gambaryan and let him leave the country. Nigerian officials immediately rejected the deal. “When you calculate the volume of trade and losses to our economy, we actually should be asking for more,” one official said.
The situation got worse when a Binance lawyer allegedly suggested that Gambaryan was being held hostage and that the U.S. might retaliate against Nigeria. This angered Nigerian authorities, who quickly ended negotiations.
Binance had also agreed to provide a list of its top 100 Nigerian users and hire two firms, Baker Tilly and Chainalysis, to help determine its actual tax debt. But since no deal was reached, Nigeria dismissed the company’s efforts.
Now, Binance is facing multiple lawsuits. The Economic and Financial Crimes Commission (EFCC) is charging it with money laundering, while the Federal Inland Revenue Service (FIRS) is suing for $2.001 billion in unpaid taxes and over $79 billion in damages. The legal battles are ongoing.
Also Read: Binance’s Tigran to reveal his story at DC Blockchain Summit
