In a recent development, the Federal High Court in Abuja has issued an order demanding comprehensive information from Binance Holdings Limited regarding all Nigerian traders on its platform. This decision came in response to an ex parte motion filed by the Economic and Financial Crimes Commission (EFCC), seeking details about Nigerians engaged in trading activities on Binance.
The suit, identified as FHC/ABJ/CS/259/2024 and dated February 29, was filed by the EFCC 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 supporting the motion, EFCC operative Hamma Bello revealed that the commission’s Special Investigation Team, operating under the Office of the National Security Adviser, received intelligence suggesting money laundering and terrorism financing activities on the Binance platform. The team initiated an investigation, uncovering instances of price discovery, confirmation, and market manipulation by users, leading to market distortions and devaluation of the Nigerian currency against other currencies.
Bello further explained, “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 highlighted that trading volume from Nigeria on Binance in 2023 alone amounted to $21.6 billion.
The EFCC asserted that the requested data would be crucial in completing its investigation. In a ruling delivered on February 29, but made public on Monday, Justice Emeka Nwite granted the interim order, directing Binance to provide comprehensive data/information regarding all Nigerian traders on its platform.
Binance is an online exchange platform allowing users to trade cryptocurrencies. Governor of the Central Bank of Nigeria, Olayemi Cardoso, revealed during a press briefing after the 293rd meeting of the Monetary Policy Committee in Abuja in February that over $26 billion had been channeled through Binance without trace in the past year.