The Federal High Court in Abuja on Monday has issued an order compelling Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive data regarding Nigerian traders on its platform.
The court’s decision stemmed from an ex parte motion filed by the EFCC, seeking information on Nigerians engaged in trading activities on Binance.
The suit, identified as FHC/ABJ/CS/259/2024 and dated February 29, was initiated under various sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022.
According to an affidavit submitted in support of the motion by an EFCC operative, Hamma Bello, the Commission’s Special Investigation Team received intelligence suggesting illicit activities such as money laundering and terrorism financing through Binance.
Bello stated that the surveillance revealed instances of market manipulation causing disruptions in currency valuations, notably affecting the Nigerian naira.
Furthermore, Binance was urged to delist the naira and provide the Office of the National Security Adviser (ONSA) with insights into Nigerian users’ activities on the platform.
Bello highlighted that data obtained from Binance indicated a trading volume of $21.6 billion from Nigeria in 2023 alone, underscoring the platform’s significant impact on the local financial landscape.
In a ruling dated February 29, but unveiled to the public on Monday, Justice Emeka Nwite granted the EFCC’s interim request.
The court directed Binance to furnish the Commission with comprehensive information on all Nigerian traders using its platform.
Binance, an online exchange facilitating cryptocurrency transactions, has drawn regulatory scrutiny in Nigeria, with concerns raised regarding the lack of oversight and potential misuse of the platform for illicit financial activities.
