Court orders Binance to release names, transactions of Nigerian users
Kunle Sanni, Abuja
A Federal High Court in Abuja has issued an order to Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with detailed information regarding all Nigerian traders who use its platform.
The order was given by Justice Emeka Nwite who ruled on an ex parte motion presented by Ekele Iheanacho, the EFCC’s attorney, on Monday.
“The applicant’s application dated and filed 29th February, 2024, is hereby granted as prayed. That an order of this honourable court is hereby made directing the operators of Binance to provide the commission with comprehensive data/information relating to all persons from Nigeria trading on its platform,” the judge ruled.
According to the court document, the interim order will enable the anti-graft agency to unravel the alleged money laundering and terrorism financing on Binance.
The federal government stated that the ex parte motion, marked FHC/ABJ/CS/259/2024, was filed in accordance with Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004, Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended), and the court’s inherent powers.
In an affidavit in support of the application filed by Hamma Bello, an EFCC operative, he stated that he was assigned to the commission’s Special Investigation Team (SIT) based in the Office of the National Security Adviser.
Bello claimed that following the establishment of the Technical Committee on Currency Stability and Forex Manipulation by ONSA, the SIT “got intelligence stating the nefarious actions (money laundering and terrorism financing) on Binance, a cryptocurrency exchange platform.”
He added receiving the intelligence, the team began investigating by monitoring the platform’s activities.
“The team uncovered users who have been using the platform for price discovery, confirmation, and market manipulation, which has caused tremendous distortions in the market, resulting in the Naira losing its values against other currencies.
“That the damage the platform has caused was clearly explained to the operators of the platform and they were requested to delist the Naira and avail the ONSA on the activities of the Nigerians on their platform.
“That from the information afforded to the team by Binance shows that the total trading volume from Nigeria in 2023 alone stood at $21.6 million. Attached and marked as Exhibit EFCC 1 is a copy of the document from Binance to the ONSA stating this fact amongst others. That the commission will ensure that investigation is conducted within such reasonable time,” Bello said.
The EFCC operative stated that a certain matter was of utmost public interest and providing data would help the commission with its investigation activities.
He emphasized that denying the request would largely hamper the investigation.
Binance is a global cryptocurrency exchange platform that lists over 350 cryptocurrencies. Apart from cryptocurrency trading, it also provides various services that enhance the experience for users and blockchain developers.
The Nigerian government had demanded $10 billion from Binance as a penalty during its crackdown on the cryptocurrency exchange platform. This action, according to experts, is an effort to restore the value of the Nigerian local currency.
Similarly, In a move to stabilize the foreign exchange market and preserve the value of the local currency, the Nigerian government detained two executives of the Binance crypto exchange platform.
