Court Orders Binance To Release Comprehensive Data Of All Nigerian Users To EFCC
Binance Holdings Limited has been ordered by a Federal High Court in Abujaย to provide the Economic and Financial Crimes Commission with comprehensive information on all persons from Nigeria trading on its platform.
Emeka Nwite, the presiding judge, gave the ruling on an ex parte motion moved by Ekele Iheanacho, the EFCC’s lawyer, on February 29.
The court handed down the order in an ex-parte motion filed by the EFCC demanding information about Nigerians trading on Binance.
The suit marked: FHC/ABJ/CS/259/2024 and dated February 29, according to the anti-graft agency, was brought pursuant to 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 (as amended).
In the affidavit in support of the motion deposed to by an operative of the EFCC, Hamma Bello, he stated that the Special Investigation Team of the commission domiciled in the Office of the National Security Adviser received intelligence that money laundering and terrorism financing was carried out on Binance.
According to him, โThe 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.
โThat on receipt of the intelligence, the team began an investigation by conducting surveillance of the activities of the platform.
โThe 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 currenciesโ
He also said the team uncovered some users whose activities on Binance resulted in the countryโs currency losing its value against other currencies.
โThat 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.
โThat 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.
โThat from the information afforded to the team by Binance shows trading volume from Nigeria in 2023 alone stood at $21.6bn.
โAttached and marked as Exhibit EFCC 1 is a copy of the document from Binance to the ONSA stating this fact amongst others.
โThat the commission will ensure that investigation is conducted within such reasonable time,โ
Bello stated that the requested data would help the commission complete its investigation,” he said.
According to a certified true copy of the ruling, which was delivered on February 29 but sighted by journalists on Monday, Justice Emeka Nwite granted the interim order.
Nwite said, โThe applicantโs application dated and filed on February 29, 2024, is hereby granted as prayed.
โThat 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.โ
