A federal high court in Abuja has issued an order mandating Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive data on all individuals from Nigeria trading on its platform.
The ruling was handed down by Justice Emeka Nwite on an ex parte motion filed by Ekele Iheanacho, counsel for the EFCC, on February 29.
Justice Nwite granted the application, stating, “That 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.”
The ex-parte motion, labeled: FHC/ABJ/CS/259/2024, was filed based on relevant sections of the Economic and Financial Crimes Establishment Act, 2004, the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended), and the court’s inherent powers.
In an affidavit supporting the motion, Hamma Bello, an EFCC operative, revealed that the agency’s Special Investigation Team (SIT) received intelligence on potential money laundering and terrorism financing activities on Binance, a cryptocurrency exchange platform.
According to Bello, the investigation uncovered users engaging in activities causing market distortions, resulting in the depreciation of the Naira against other currencies. He cited a document from Binance to the Office of the National Security Adviser (ONSA), indicating a total trading volume of $21.6 billion from Nigeria in 2023 alone.
Bello emphasized the urgency and public interest in obtaining the requested information, stating that failure to do so would hinder the commission’s inquiry.
The background of the case stems from allegations made by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, in February 2024. Onanuga accused Binance and other crypto platforms of operating against Nigeria’s interests, calling for their ban due to alleged market manipulation and encroachment on the Central Bank of Nigeria’s role.
The court’s directive underscores the escalating concerns surrounding cryptocurrency trading and its potential impact on Nigeria’s financial stability.
