Court Orders Binance To Release Data of Nigerian Users
Justice Emeka Nwite from the Federal High Court in Abuja has issued a directive for Cryptocurrency giants, Binance Holdings Limited to provide the Economic and Financial Crimes Commission
(EFCC) with detailed information regarding Nigerian traders on its platform.
This order was granted in response to a lawsuit filed by the EFCC under the reference number FHC/ABJ/CS/259/2024 on February 29.
The suit was based on various sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022.
According to an affidavit submitted by EFCC operative Hamma Bello, the commission’s Special Investigation Team, located within the Office of the National Security Adviser, received intelligence
suggesting illicit financial activities, including money laundering and terrorism financing, were being conducted on Binance’s platform.
The affidavit said “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.
“That 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”
According to Bello, the team uncovered users whose activities caused the Naira to lose 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.
“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.
“That from the information afforded to the team by Binance shows trading volume from Nigeria in 2023 alone stood at $21.6bn.
“Attached and marked as Exhibit EFCC 1 is a copy of the document from Binance to the ONSA stating this fact, amongst others.
“That the commission will ensure that investigation is conducted within such reasonable time.”
