How a P2P Naira Ban Turned Into an $81.5 Billion Lawsuit

In March 2024, Binance suspended P2P trading of the Nigerian naira on its platform — Nigerian authorities blamed the exchange's P2P rate for accelerating the currency's devaluation and cited risks around money laundering and terrorism financing through such trades. P2P naira trading on Binance has remained frozen ever since.

The case quickly grew into something far bigger: Nigeria's Federal Inland Revenue Service (FIRS) brought four counts of tax evasion charges against Binance — failure to pay VAT on services provided in the country, failure to pay income tax for 2022-2023, failure to file tax returns, and aiding customers' tax evasion. The total claim reached $81.5 billion: $79.5 billion in economic damages the government attributes to parallel currency markets and naira volatility, plus $2 billion in taxes and penalties, Enat Digital reports. FIRS is separately seeking a 10% penalty plus 26.75% annual interest.

On March 24, 2026, after the prosecution presented testimony from four witnesses, Binance requested an out-of-court settlement — both sides say they're seeking a resolution rather than continuing the trial. The next hearing, covering a progress report on the negotiations, is set for May 12, 2026.

The upshot: what started as a local regulatory dispute over one specific product — P2P crypto-to-naira trading — has grown into one of the largest monetary claims ever filed against a crypto exchange, while millions of Nigerians who long relied on P2P as their main way to convert naira into dollars or stablecoins outside the official rate are still waiting to see how the standoff between the company and the state gets resolved.

This article is for informational purposes only and does not constitute investment advice.