The Federal High Court in Abuja has granted an interim order requiring Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with detailed information on Nigerian users trading on its platform. Justice Emeka Nwite issued the order following an ex parte motion filed by the EFCC's lawyer, Ekele Iheanacho. The court directive aims to aid the EFCC's investigation into alleged money laundering and terrorism financing activities facilitated through the Binance cryptocurrency exchange platform.
The interim order empowers the anti-graft agency to delve into the purported illicit financial activities conducted by Nigerian users on the platform. In his affidavit supporting the motion, EFCC operative Hamma Bello, attached to the Special Investigation Team (SIT) within the Office of the National Security Adviser (ONSA), highlighted concerns regarding market distortions and currency devaluation attributed to Binance users' activities. Bello revealed that the SIT had received intelligence indicating nefarious activities, prompting an urgent investigation.
According to Bello, Binance reported a total trading volume of $21.6 million from Nigerian users in 2023 alone. The investigation seeks to uncover instances of price manipulation and market distortion leading to the depreciation of the Naira against other currencies. Despite prior engagements with Binance to address these issues, the alleged illicit activities persisted, necessitating legal intervention.
The court's decision underscores the gravity of the situation and the imperative of regulatory oversight in the cryptocurrency sphere. Binance, a globally renowned cryptocurrency exchange platform offering services to enhance user experiences and support blockchain development, now faces heightened scrutiny as Nigerian authorities intensify efforts to combat financial crimes.
