A Federal High Court in Abuja has ordered Binance Holdings Limited to provide the Economic and Financial Crimes Commission with detailed data on all Nigerian traders using its platform.
The court issued the order in an ex-parte motion filed by the EFCC, which sought information about Nigerians trading on Binance.
The suit, marked as FHC/ABJ/CS/259/2024 and dated February 29, was brought by the anti-graft agency pursuant to Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004, as well as Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended).
In an affidavit supporting the motion, Hamma Bello, an operative of the EFCC, stated that the commission’s Special Investigation Team, based in the Office of the National Security Adviser, received intelligence indicating money laundering and terrorism financing activities on Binance.
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Bello further revealed that the team identified certain users whose actions on Binance contributed to the devaluation of the country’s currency against other currencies.
He 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.
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“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.
“That 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.
“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 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.”
