The Binance Holdings Limited is to release a comprehensive data of all persons from Nigeria trading on its platform to the Economic and Financial Crimes Commission (EFCC).
A Federal High Court in Abuja gave the order while ruling on an ex-parte motion filed by the EFCC, demanding information about Nigerians trading on Binance.
The suit marked: FHC/ABJ/CS/259/2024 and dated February 29 according to the anti-graft agency 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).
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In the affidavit in support of the motion deposed to by Hamman Bello, an operative of the EFCC, claimed that the Special Investigation Team of the commission domiciled in the Office of the National Security Adviser received intelligence that money laundering and terrorism financing was carried out on Binance.
“The Special Investigation Team of the commission domiciled in the Office of the National Security Adviser received an intelligence stating the nefarious activities (money laundering and terrorism financing) on Binance, a cryptocurrency exchange platform,” he said.
“That on receipt of the intelligence, the team began an investigation by conducting surveillance of the activities of the platform.
“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.
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“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 trading volume from Nigeria in 2023 alone stood at $21.6 billion.
“Attached and marked as Exhibit EFCC 1 is a copy of the document from Binance to the ONSA stating this fact amongst others.
“That the commission will ensure that investigation is conducted within such reasonable time,” Bello said, adding that the requested data would help the commission complete its investigation.
In granting the interim order, Justice Emeka Nwite held that, “The applicant’s application dated and filed 29th February 2024 is hereby granted as prayed.
“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.”