COURT ORDERS BINANCE TO PROVIDE EFCC WITH USER DATA FROM NIGERIANS

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A Federal High Court located in Abuja has mandated that Binance Holdings Limited furnish the Economic and Financial Crimes Commission with detailed data about every Nigerian individual who transacts on its platform.

In response to an ex-parte application from the EFCC seeking details regarding Nigerian traders on Binance, the court issued the order.

The suit, filed on February 29 and designated FHC/ABJ/CS/259/2024, was brought under the auspices of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended), Section 15 of that act, and Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004.

An EFCC employee named Hamma Bello testified in support of the motion that the commission’s Special Investigation Team, based in the Office of the National Security Adviser, had received information indicating that Binance was being used for money laundering and financing terrorist activities.

He said, “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.

“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”

Bello also said the team uncovered some users whose activities on Binance resulted in the country’s currency losing its value against other currencies.

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 trading volume from Nigeria in 2023 alone stood at $21.6bn.

“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,”

According to Bello, the commission’s probe would be completed with the assistance of the required data.

Justice Emeka Nwite issued the interim order, according to a certified authentic copy of the decree that was delivered on February 29 but was seen by journalists on Monday.

Nwite said, “The applicant’s application dated and filed 29th February 2024 is hereby granted as prayed.