The Federal High Court in Abuja has directed Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with detailed information concerning Nigerian individuals engaged in trading on its platform.
The court’s decision followed an ex parte motion filed by the EFCC seeking information regarding Nigerian users of Binance.
According to the suit marked FHC/ABJ/CS/259/2024 and dated February 29, the EFCC invoked sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022, in its bid to obtain comprehensive data on Nigerian traders on Binance.
In an affidavit supporting the motion, an EFCC operative, Hamma Bello, alleged that the commission’s Special Investigation Team received intelligence suggesting that money laundering and terrorism financing activities were being facilitated through Binance.
Bello asserted that the investigation revealed instances of price manipulation on the platform, resulting in distortions in the market and depreciation of the Naira against other currencies.
The EFCC operative highlighted that Binance’s trading volume from Nigeria in 2023 alone amounted to a staggering $21.6 billion.
Justice Emeka Nwite, in granting the interim order, directed Binance to provide the EFCC with comprehensive data pertaining to all Nigerian traders on its platform.
This ruling underscores the Nigerian government’s commitment to combating financial crimes and ensuring transparency in cryptocurrency transactions.
Binance, a prominent online exchange for cryptocurrencies, now faces heightened scrutiny as it must comply with the court’s directive amidst ongoing investigations into illicit financial activities facilitated through its platform.