More troubles for Binance, as Court orders firm to submit data of Nigerian traders to EFCC

Following the alleged illicit transaction totalling about $21bn by Binance Holdings Limited, Justice Emeka Nwite of the Federal High Court, Abuja has ordered the cryptocurrency exchange platform to provide the Economic and Financial Crimes Commission (EFCC) with the comprehensive data or information of all persons from Nigeria trading on its platform.

Justice Nwite granted the interim order after ruling on the ex-parte motion moved by the EFCC’s lawyer, Ekele Iheanacho.

The interim order was granted to enable the anti-graft agency to unravel the money laundering and terrorism financing allegations leveled against Binance.

The ex-parte motion was brought pursuant to Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004 and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended) and the inherent powers of the court.

In the affidavit in support of the motion deposed to by an operative of the EFCC, Hamma Bello, he said he was attached to the Special Investigation Team (SIT) of the commission domiciled in the Office of the National Security Adviser (ONSA).

Bello averred that following the inauguration of the Technical Committee on Currency Stability and Forex Manipulation by the ONSA, the SIT “received an intelligence stating the nefarious activities (money laundering and terrorism financing) on Binance.

READ ALSO: Nigeria demands Binance disclose top users as executives remain detained

He added that on receipt of the Intelligence, the team began investigation by conducting surveillance of the activities of the platform.

Bello, who said that the matter was of utmost urgent public interest, said the data provided would enable the commission to accomplish its investigative activities.

He said it was in the interest of justice to grant the application as refusal of the request would largely hamper the commission’s investigation.

“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 value 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 $21.6bn (Twenty-one billion, six hundred million dollars).

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now