Struggle escalates between Binance and Nigeria as a one-billion-dollar lawsuit looms
In the dynamic world of cryptocurrency, Africa is witnessing significant developments. Here's a roundup of some key events that have recently unfolded:
Nigeria's SEC Proposes New Regulations for Cryptocurrency Taxation
Nigeria's Securities and Exchange Commission (SEC) is working on new regulations that would enforce taxation on cryptocurrency transactions. This move aims to bring crypto transactions under formal tax regulations and expand the crypto licensing framework.
Binance under Scrutiny in Nigeria
Binance, one of the world's largest cryptocurrency exchanges, has been under investigation in Nigeria. Allegations of a $150 million bribe demand by Nigerian officials for regulatory resolution have been levelled against the company, but the Nigerian government has dismissed these claims as defamatory. A Nigerian lawmaker named in the bribery allegation, Philip Agbese, has sued Binance executive Tigran Gambaryan for defamation.
However, it is important to clarify that while large fraud cases involving Nigerian actors and Binance accounts exist, no direct bribery scandal or billion-dollar lawsuit titled "Binance versus Nigeria" is confirmed by the current information. The issues revolve around fraud investigations, asset forfeiture actions, and crypto laundering probes involving Nigerian nationals, but not an official legal dispute or bribery case between Binance as a company and the Nigerian government.
Binance's Legal Troubles in the U.S. and Elsewhere
In July 2025, a court in Malta ordered the confiscation of a Binance crypto account linked to suspected fraud involving a Nigerian IP address. The account held virtual currency worth about €8,835 and was connected to a fraudulent website aimed at deceiving less IT literate people. Binance froze the account after detecting suspicious activity in June 2022, and local police pursued confiscation.
Additionally, the United States government initiated civil proceedings to forfeit approximately $7.1 million in cryptocurrency laundered by Nigerian and Russian criminals on Binance as part of a $97 million international investment fraud scheme involving fake oil and gas storage investments. These funds were seized by Homeland Security Investigations in December 2024, and the case is active in a U.S. federal court.
African Blockchain Talent and Partnerships
On a more positive note, African blockchain talent firm Web3Bridge has opened the waitlist for its 13th cohort. Meanwhile, Tether has partnered with the Republic of Guinea to integrate blockchain technology into its financial and public sector operations. The partnership aims to implement efficient blockchain solutions that benefit both public and private sectors in Guinea, and Guinea aspires to establish itself as a leader in technological innovation.
Crypto Adoption and Growth in Africa
Cryptocurrency decentralized finance is expected to hit R52.3 million in South Africa, while over half of African deals by DCG, an American Web3 VC, were made in 2024 alone. These developments indicate a growing interest and adoption of cryptocurrency in Africa.
Other Developments
Morocco is planning to crack down on cryptocurrency users acquiring real estate abroad. Ghana once promised to become the first blockchain-powered government, but little has materialized since the announcement. VISA has opened applications for Cohort 4 of its Africa Fintech Accelerator Program with a deadline of Mar. 25, 2025.
Lastly, Mauritius launched the nationwide blockchain-based eVerify service in 2023 to enhance the verification of government-issued certificates.
These developments underscore the evolving landscape of cryptocurrency and blockchain technology in Africa, with both challenges and opportunities for growth and innovation.
- In the dynamic world of cryptocurrency, Africa is experiencing significant advancements, as exemplified by new regulations for cryptocurrency taxation proposed by Nigeria's Securities and Exchange Commission (SEC).
- Binance, a global cryptocurrency exchange, has been under investigation in Nigeria due to allegations of a $150 million bribe demand from Nigerian officials. However, no official legal dispute or bribery case between Binance and the Nigerian government has been confirmed.
- While large fraud cases involving Nigerian actors and Binance accounts exist, the issues primarily revolve around fraud investigations, crypto laundering probes, and asset forfeiture actions.
- In July 2025, a court in Malta ordered the seizure of a Binance crypto account linked to suspected fraud involving a Nigerian IP address. The account held virtual currency worth about €8,835, and the case is active in a U.S. federal court.
- On a positive note, African blockchain talent firm Web3Bridge is accepting applications for its 13th cohort, and Tether has partnered with the Republic of Guinea to integrate blockchain technology into its financial and public sector operations.
- Cryptocurrency decentralized finance is expected to hit R52.3 million in South Africa, and over half of African deals by DCG, an American Web3 VC, were made in 2024 alone, indicating a growing interest and adoption of cryptocurrency in Africa.
- Other developments include Morocco's plans to crack down on cryptocurrency users acquiring real estate abroad, Ghana's slow progress towards becoming a blockchain-powered government, and VISA's opening of applications for its Africa Fintech Accelerator Program.
- Mauritius launched a nationwide blockchain-based eVerify service in 2023 to enhance the verification of government-issued certificates.
- These advancements and challenges in the cryptocurrency and blockchain technology landscape in Africa underscore the potential for growth and innovation, while also highlighting the need for responsible regulation, business practices, and governance.
