The Federal High Court in Abuja has issued an order requiring Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive details regarding Nigerian users on its platform. The court’s decision follows an ex parte motion filed by the EFCC seeking information about Nigerian traders on Binance.
The suit, labeled FHC/ABJ/CS/259/2024 and dated February 29, was brought under relevant sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended).
In an affidavit supporting the motion, an EFCC operative, Hamma Bello, revealed that the commission’s Special Investigation Team received intelligence suggesting money laundering and terrorism financing activities on Binance. The team initiated an investigation and found evidence of market manipulation and distortion causing the devaluation of the naira against other currencies.
Bello explained that Binance was urged to delist the naira and provide the Office of the National Security Adviser with information on Nigerian users. According to Bello, trading volume from Nigeria on Binance reached $21.6 billion in 2023 alone.
The requested data is crucial for the EFCC to conclude its investigation. Justice Emeka Nwite granted the interim order, directing Binance to provide comprehensive information about Nigerian traders on its platform.
Binance is an online cryptocurrency exchange platform. The revelation about transactions through Binance without proper documentation was disclosed by the Central Bank of Nigeria Governor, Olayemi Cardoso, during a press briefing after the 293rd meeting of the Monetary Policy Committee in Abuja in February. It was further reported that two executives of Binance were arrested and detained following a ban on their website.
