🟠 Binance vs Nigeria: The saga continues with a billion-dollar lawsuit

Binance vs. Nigeria: Bribery scandal and a billion-dollar Lawsuit

Topline: Nigeria’s crackdown on Binance has taken several turns — from bribery allegations and regulatory pressure to a staggering lawsuit seeking billions in damages. Here’s what you need to know. (Details)

Bribery allegations: Tigran Gambaryan, the Binance executive detained for 8 months in Nigeria, has backed CEO Richard Teng’s claim that Nigerian officials demanded a $150 million bribe to resolve the company’s regulatory troubles. (Details)

• In an interview with Wired, Gambaryan said a seemingly routine meeting with Nigerian lawmakers in January 2024 ended with a backdoor request for the payment.
• The demand? $150 million in crypto to be sent directly to officials’ personal wallets, According to Gambaryan.
• When Binance refused, Gambaryan was later invited back to Nigeria under the guise of an investigation — only to be detained.
• Nigeria has dismissed these claims as “outrageous” and “defamatory,” countering that it was the one that rejected a $5 million bribe offer from Binance in exchange for Gambaryan’s release.
• A Nigerian lawmaker named in the bribery allegation, Philip Agbese, has sued Gambaryan for defamation.

The $81.5 billion lawsuit

• As if in response to the allegations, the Nigerian government, has sued the exchange for $79.5 billion in alleged economic damages and $2 billion in unpaid taxes and interest.
• Officials blame Binance’s peer-to-peer (P2P) platform for the naira’s sharp decline, arguing that unchecked exchange rates contributed to inflation.
• The lawsuit follows earlier money laundering and tax evasion charges.
• Binance has pushed back, stating Nigeria was never a significant market and that its total platform transaction volume in 2023 was $21.6 billion — far from officials’ alleged $26 billion revenue claim.
• The company also added that the downward spiral of the naira did not stop when it discontinued its P2P trading platform in Nigeria, proving that it had nothing to do with it in the first place. 

💭 Oge’s thought bubble: Nigeria’s case against Binance is Africa’s most aggressive crypto regulation yet.

• It could set the tone for how global firms approach the continent, but will it bring clearer rules or push crypto underground?
• Nigeria risks losing industry leadership to more crypto-friendly nations if these efforts don’t lead to supportive policies.

Nigeria to enforce crypto taxation under proposed law

Topline:​ Nigeria’s Securities and Exchange Commission (SEC) is reportedly working on new regulations that would enforce taxation on cryptocurrency transactions. (Details)

Key details: A proposed bill is under review and expected to pass this quarter, Bloomberg reported.

• The SEC aims to bring crypto transactions under formal tax regulations, requiring exchanges to comply with levies on transactions.
• The SEC also aims to expand its crypto licensing framework, enabling Nigerians to trade on centralized exchanges where transactions can be more easily monitored and taxed. 
• No official tax rate has been disclosed yet, but authorities believe it will generate significant revenue.

Zoom out: With this development, Nigeria joins Kenya in the murky waters of crypto taxation. Kenya’s 3% digital asset tax (DAT), the details of which displayed a knowledge gap on how crypto transactions work, was the subject of a lawsuit.

Tether Partners with Guinea to Drive Blockchain Adoption

Topline: The Republic of Guinea has partnered with Tether to integrate blockchain technology into its financial and public sector operations. (Details)

The details: Tether has signed a memorandum of understanding (MOU) with Guinea to support the country’s digital transformation.

• The partnership includes blockchain education initiatives with the country’s main research institute, Cité des Sciences et de l’Innovation de Guinée.
• Guinea aims to explore peer-to-peer finance solutions and blockchain-based governance models.

Key Quotes: Tether CEO Paolo Ardoino said:

“Together, we aim to implement efficient blockchain solutions that benefit both public and private sectors, paving the way for economic growth and establishing Guinea as a leader in technological innovation.”

Zoom out: The Republic of Guinea is not the first African country to explore the adoption of blockchain technology on a country-wide scale. 

• Ghana once promised to become the first blockchain-powered government, but little has materialized since that announcement.
• Mauritius, on the other hand, launched the nationwide blockchain-based eVerify service in 2023 to enhance the verification of government-issued certificates. 

Catch up

🌍 Over half of African deals by DCG, an American Web3 VC, were made in 2024 alone (BitKe)

🌍 MANSA raises $10 million in seed funding. (MANSA)

🇲🇦 Morocco to crack down on cryptocurrency users acquiring real estate abroad (MSN)

🌎 Cryptocurrency theft of £1.1bn could be biggest ever (BBC)

🇿🇦 Crypto decentralized finance to hit R52.3 million in South Africa (My Broadband)

Opportunities

• VISA opens applications for Cohort 4 of its Africa Fintech Accelerator Program. Deadline: Mar. 25, 2025. (Details)
• African blockchain talent firm Web3Bridge has opened the waitlist for its 13th cohort. Join the waitlist here.

That’s it for this week.

Until next time, stay informed.

Cheers,

Ogechi.