The Abuja Division of the Federal High Court has ordered Binance Holdings Limited to provide the Economic and Financial Crimes Commission (EFCC) with comprehensive details concerning all Nigerian traders on its platform.
This order was granted by Justice Emeka Nwite following the submission of an ex parte motion by the EFCC’s legal representative, Ekele Iheanacho.
Justice Nwite, in granting the interim order, ruled in favor of the EFCC’s application, specifying, “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.”
This interim order enables the EFCC to delve into allegations of money laundering and terrorism financing activities linked to Binance, a prominent cryptocurrency exchange platform.
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The ex parte motion, identified as FHC/ABJ/CS/259/2024, was filed under the purview of various legal provisions including Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004, and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022, along with the inherent powers vested in the court.
In an affidavit supporting the motion sworn by Hamma Bello, an EFCC operative attached to the Special Investigation Team (SIT) domiciled in the Office of the National Security Adviser (ONSA), it was revealed that the SIT received intelligence indicating illicit activities, particularly money laundering and terrorism financing, transpiring on Binance’s platform. Bello further elaborated that upon receiving this intelligence, the team initiated investigations by monitoring the platform’s operations.
Bello emphasized, “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.”
Furthermore, it was disclosed that Binance’s data indicated a total trading volume from Nigeria in 2023 alone amounted to $21.6 million, emphasizing the significance of the investigation.
Considering the urgency and public interest involved, Mr. Bello stressed the necessity of obtaining this data to facilitate the commission’s investigative efforts, asserting that refusal would impede the progress of the investigation.
Binance, a widely recognized cryptocurrency exchange platform offering trading services for over 350 cryptocurrencies globally, now finds itself at the center of this legal action initiated by the EFCC.
