The Federal High Court in Abuja has issued a directive to Binance Holdings Limited, compelling them to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive information regarding Nigerian traders on its platform.
This ruling came in response to an ex parte motion filed by the EFCC seeking data on Nigerians engaging in transactions on Binance.
The suit, identified as FHC/ABJ/CS/259/2024 and dated February 29, was filed under relevant sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022.
In support of the motion, an EFCC operative, Hamma Bello, stated that the commission’s Special Investigation Team, operating under the Office of the National Security Adviser, had received intelligence indicating potential money laundering and terrorism financing activities on Binance.
The affidavit detailed the commission’s surveillance efforts, revealing instances of market manipulation that led to fluctuations in the value of the naira against other currencies.
Despite warnings issued to Binance regarding these activities, the platform allegedly failed to cooperate fully.
Bello emphasised the necessity of obtaining the requested data to facilitate the EFCC’s investigation, citing a reported trading volume of $21.6 billion from Nigeria on Binance in 2023 alone.
Justice Emeka Nwite, in a ruling dated February 29, granted the interim order, directing Binance to provide comprehensive information on Nigerian traders to the EFCC.
Binance, an online cryptocurrency exchange, has come under scrutiny, with the Governor of the Central Bank of Nigeria, Olayemi Cardoso, revealing that over $26 billion had been transacted through the platform without proper traceability in the past year.
Recent reports also indicated that two Binance executives were arrested and detained upon arrival in Nigeria following a ban on their website.
