A Federal High Court in Abuja has given a command Binance Holdings Limited to hand over thorough details about all Nigerian traders on its platform to the Economic and Financial Crimes Commission.
The court issued the order in an urgent motion filed by the EFCC seeking information about Nigerians trading on Binance.
The lawsuit labeled: FHC/ABJ/CS/259/2024 and dated February 29 according to the anti-graft agency was initiated in accordance with 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 supporting the motion, a member of the EFCC, Hamma Bello, stated that the commission's Special Investigation Team acquired intelligence indicating that money laundering and terrorism financing occurred on Binance.
He mentioned, “The Special Investigation Team of the commission domiciled in the Office of the National Security Adviser received an intelligence stating the nefarious activities (money laundering and terrorism financing) on Binance, a cryptocurrency exchange platform.
“Upon receiving the intelligence, the team commenced an investigation by observing the platform's activities.
“The team identified users who have been utilizing the platform for price discovery, confirmation, and market manipulation, causing significant disruptions in the market, leading to the Naira losing its value against other currencies”
Bello also stated that the team discovered some users whose actions on Binance led to the devaluation of the country’s currency against other currencies.
He stated, “The team identified users who have been using the platform for price discovery, confirmation, and market manipulation, causing significant disturbances in the market, resulting in the Naira losing its value against other currencies.
“The adverse effects of the platform were clearly communicated to the platform's operators, and they were asked to remove the Naira and provide the ONSA with information about the activities of Nigerians on their platform.
“Based on the information provided to the team by Binance, the trading volume from Nigeria in 2023 alone was $21.6bn.
“An enclosed document marked as Exhibit EFCC 1 is a copy of the document from Binance to the ONSA stating this fact amongst others.
“The commission will ensure that the investigation is carried out within a reasonable timeframe,”
Bello mentioned that the requested information would assist the commission in completing its investigation.
As per a certified true copy of the ruling, which was issued on February 29 but observed by journalists on Monday, Justice Emeka Nwite granted the interim order.
Nwite said, “The applicant’s application dated and filed 29th February 2024 is hereby granted as prayed.
“An order of this honorable court is made directing the operators of Binance to provide the commission with comprehensive data/information regarding all persons from Nigeria trading on its platform.”
Binance is a website where people can exchange cryptocurrencies.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria, revealed at a press briefing after the 293rd meeting of the Monetary Policy Committee in Abuja that over $26bn was transferred through Binance without being traced within the past year.
According to a report by Financial Times on February 28, two company executives were arrested and held in custody after arriving in the country due to a prohibition of their website.
In a report on March 12, 2024, the FT stated that the EFCC requested Binance to share information about its top 100 users in Nigeria and all transaction history for the previous six months.
The report indicates that the request is a key point of discussion between Binance and Nigeria.
