The Nigerian government demanded $10bn in compensation from Binance.
It says Binance manipulated foreign exchange rates through currency speculation and rate-fixing, which have seen the naira lose nearly 70% of its value in recent months.
Two Binance executives were arrested in Nigeria earlier in the week.
Nigeria is Africa's biggest economy and also one of the world's biggest cryptocurrency markets.
On Tuesday, Nigeria's central bank governor Olayemi Cardoso said Binance Nigeria had moved $26bn worth of untraceable funds.
These allegations are weighty,
That's a huge sum - even more than the annual Nigeria diaspora remittances of $24bn.
Cryptocurrency transactions equivalent to about 12% of Nigeria's total income, or GDP, took place in the year to June 2023.
Cryptocurrencies are not illegal in Nigeria but firms must register in order to operate, the government says.
President Bola Tinubu scrapped the policy of pegging the naira to the dollar, allowing traders to buy and sell the currency at rates determined by the market.
All of a sudden the exchange rate went through the roof... and it was being caused by the people on Binance platform.
The government could not just fold its hands and allow this thing to continue.
The government also says cryptocurrency is used for money-laundering and funding terror.
The "anonymity and privacy inherent in the cryptocurrency system are what draw individuals, particularly those with illicit intentions, towards its use.
The naira, which currently exchanges at 1,595 naira to US$1, compared to about 460 a year ago.
The collapse of the naira has worsened the cost-of-living crisis. High food and commodity prices - including fuel and transport - have led to protests in recent weeks.
As Nigeria continues to embrace the possibilities of blockchain technology and cryptocurrency, Binance Nigeria stands as a testament to the transformative power of innovation.
Do you think the demand of $10bn in compensation from Binance is a right move or is there more to this.
let's here your thoughts 😊
