A Federal High Court in Abuja has instructed Binance Holdings Limited, a cryptocurrency company, to provide detailed information about all individuals trading on its platform to the Economic and Financial Crimes Commission (EFCC).
Justice Emeka Nwite issued the temporary order following a decision on the ex-parte motion presented by the EFCC’s attorney, Ekele Iheanacho.
“The applicant’s application dated and filed 29th February, 2024, is hereby granted as prayed,” Nwite said.
“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 judge ordered.
The EFCC was granted an order to investigate alleged money laundering and terrorism financing on Binance.
A certified true copy of the ruling was delivered on February 29, 2024.
The ex-parte motion, identified as FHC/ABJ/CS/259/2024, was filed based on specific sections of the Economic and Financial Crimes Establishment Act, 2004 and the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended), as well as the court’s inherent powers.
In an affidavit supporting the motion, Hamma Bello, an EFCC operative with the Special Investigation Team (SIT) at the Office of the National Security Adviser (ONSA), stated that the investigation was initiated following “an intelligence stating the nefarious activities (money laundering and terrorism financing) on Binance, a crypto currency exchange platform.
“That on receipt of the Intelligence, the team began investigation by conducting surveillance of the activities of the platform,” he said.
“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 that the total trading volume from Nigeria in 2023 alone stood at $21.6 (twenty one billion, six hundred million dollars).”
