The Federal High Court in Abuja has taken a significant step in the fight against financial crimes by granting an order mandating Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with detailed information regarding Nigerian users trading on its platform.
This development stems from an ex parte motion initiated by the EFCC, seeking comprehensive data on individuals from Nigeria engaging in transactions on Binance.
The lawsuit, bearing the mark FHC/ABJ/CS/259/2024 and dated February 29, was brought forth under relevant sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended).
In an affidavit accompanying the motion, Hamma Bello, an operative of the EFCC, underscored the agency’s concerns regarding potential money laundering and terrorism financing activities occurring on the Binance platform.
Bello outlined that the Special Investigation Team, operating under the Office of the National Security Adviser, had received intelligence indicating illicit activities on Binance, including market manipulation causing distortions in currency values.
Bello further elucidated, “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 of the activities of the Nigerians on their platform.”
He revealed that trading volume from Nigeria on Binance in 2023 alone amounted to a staggering $21.6 billion.
The EFCC emphasized the necessity of obtaining the requested data to facilitate its ongoing investigation into these illicit activities.
The presiding judge, Justice Emeka Nwite, granted the interim order on February 29, directing Binance to furnish the EFCC with comprehensive information regarding Nigerian traders on its platform.
Binance, an online exchange specializing in cryptocurrencies, has come under increased scrutiny in recent times.
The Central Bank of Nigeria Governor, Olayemi Cardoso, revealed that over $26 billion had been channeled through Binance without proper traceability over the past year.
Additionally, reports emerged that two executives of the company were detained upon entering the country due to regulatory concerns.
This latest court order signifies a concerted effort by Nigerian authorities to address the challenges posed by illicit financial activities facilitated by cryptocurrency platforms.
As the investigation progresses, stakeholders will be closely monitoring developments, underscoring the importance of robust regulatory measures to safeguard against financial crimes and uphold the integrity of the financial system.
