AN ABUJA COURT HAS DIRECTED BINANCE TO PROVIDE THE DATA OF NIGERIAN USERS TO THE EFCC.

A federal high court in Abuja has mandated Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with detailed information regarding all Nigerian users trading on its platform.

The court’s decision stemmed from various concerns, including allegations of money laundering and terrorism financing purportedly conducted through Binance. There have been reports indicating that some users have exploited the platform for price manipulation, leading to significant economic challenges in Nigeria.

In an affidavit supporting the motion, Hamma Bello, an EFCC operative, stated that the commission’s Special Investigation Team received intelligence suggesting illicit financial activities on Binance. The team initiated an investigation, uncovering instances of price manipulation that adversely impacted the value of the Naira against other currencies.

Bello emphasized the importance of obtaining data from Binance to facilitate the ongoing investigation. Justice Emeka Nwite granted the interim order on February 29, directing Binance to provide comprehensive information on Nigerian traders using its platform.

Binance operates as an online cryptocurrency exchange platform. According to the Governor of the Central Bank of Nigeria, Olayemi Cardoso, over $26 billion was channeled through Binance without proper traceability in the past year.

Recent reports indicate that two Binance executives were detained upon their arrival in Nigeria due to a ban on the platform. Furthermore, on March 12, 2024, the EFCC requested data on Binance’s top 100 users in Nigeria and transaction histories spanning six months, sparking negotiations between Binance and Nigerian authorities.

Source: Techeconomy