A Federal High Court in Abuja has ordered Binance Holdings Limited to provide the Economic and Financial Crimes Commission with comprehensive information on all persons from Nigeria trading on its platform.
The EFCC filed an ex-parte motion requesting information about Nigerian traders on Binance, and the court granted it.
The lawsuit was filed on February 29 and was marked FHC/ABJ/CS/259/2024. It was based on the Economic and Financial Crimes Establishment Act, 2004 Sections 6(b), (h), (I), 7(1), (a)(2), and 38, as well as Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended).
An EFCC agent named Hamma Bello testified in support of the motion that the commission’s Special Investigation Team, based in the Office of the National Security Adviser, had received information indicating that Binance was being used for money laundering and financing terrorist activities.
He said, “The Special Investigation Team of the commission domiciled in the Office of the National Security Adviser received an intelligence report stating the nefarious activities (money laundering and terrorism financing) on Binance, a cryptocurrency exchange platform.
“On receipt of the intelligence, the team began an investigation by conducting surveillance of the activities of the platform.
“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 value against other currencies.”
Bello also said the team uncovered some users whose activities on Binance resulted in the country’s currency losing its value against other currencies.
He said, “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 value 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 of the activities of the Nigerians on their platform.
According to data provided to the team by Binance, Nigeria accounted for $21.6 billion of trading volume in 2023 alone.
“A copy of the document from Binance to the ONSA stating this fact, among others, is attached and marked as Exhibit EFCC 1.
“That the commission will make sure an investigation is carried out in a timely manner,”
According to Bello, the commission’s investigation would be completed with the assistance of the requested data.
A certified true copy of the ruling, delivered on February 29 but seen by reporters on Monday, states that Justice Emeka Nwite issued the temporary order.
“The application of the petitioner, dated and filed on February 29, 2024, is hereby granted as prayed for,” Nwite declared.
“That an order of this honourable court is hereby made directing the operators of Binance to provide the commission with comprehensive data and information relating to all persons from Nigeria trading on its platform.”
Binance is an online exchange where users can trade cryptocurrencies.
The Central Bank of Nigeria Governor, Olayemi Cardoso, at a press briefing after the 293rd meeting of the Monetary Policy Committee in Abuja on February, disclosed that more than $26 billion was channelled through Binance without traces in the last year.
The Financial Times reported on February 28 that two executives of the company were arrested and detained after they flew into the country as a result of a ban on their website.
On March 12, 2024, the FT reported that the EFCC asked Binance to share data on its 100 top users in Nigeria as well as all transaction history for the past six months.
According to the report, the request is at the centre of negotiations between Binance and Nigeria.
Source: Punch News Nigeria
