A significant legal development has emerged as the Federal High Court in Abuja has directed Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive information regarding all Nigerian users engaged in trading on its platform.
The court’s decision, delivered through an ex-parte motion filed by the EFCC, mandates Binance to provide detailed data about Nigerians trading on its platform. This motion, marked FHC/ABJ/CS/259/2024 and dated February 29, was brought forward pursuant to various sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended).
In the supporting affidavit deposed to by EFCC operative Hamma Bello, it was revealed that the commission’s Special Investigation Team, operating under the Office of the National Security Adviser, had received intelligence indicating illicit activities such as money laundering and terrorism financing taking place on Binance, a cryptocurrency exchange platform.
Bello elaborated that the investigation uncovered users engaging in activities such as price discovery, confirmation, and market manipulation, which led to significant distortions in the market and a decline in the value of the Naira against other currencies. Despite attempts to engage with Binance to address these concerns, the platform allegedly failed to comply, prompting the EFCC to seek legal intervention.
The requested data, including trading volumes from Nigeria, is seen as crucial for the completion of the EFCC’s investigation into the alleged illicit activities on Binance. Justice Emeka Nwite, in granting the interim order on February 29, directed Binance to provide comprehensive data and information relating to all Nigerian users trading on its platform.
Binance, an online exchange facilitating cryptocurrency transactions, has been under scrutiny following revelations by the Central Bank of Nigeria Governor, Olayemi Cardoso, who disclosed that over $26 billion had been channeled through the platform without proper documentation over the past year.
Earlier reports also highlighted the arrest and detention of two Binance executives who entered Nigeria after their website was banned. The EFCC’s request for data on the platform’s top 100 users in Nigeria and transaction history for the past six months further intensifies the ongoing negotiations between Binance and Nigerian authorities, as reported by Financial Times on March 12, 2024.
