Court Orders Binance to Release Identities, Transaction Information Of Users In Nigeria To EFCC

The Federal Court has directed Binance to disclose the identities and transaction information of the most prominent users in Nigeria.

Abuja Federal High Court has ordered the operators of Binance Holdings Limited to provide the Economic and Financial Crimes Commission (EFCC) with comprehensive data and information relating to all persons from Nigeria who are trading on its platform.

VerseNews reports that the directive was given in an interim ruling delivered by Justice Emeka Nwite on February 29 following an ex-parte motion filed against the cryptocurrency exchange platform by the EFCC.

The antigraft agency’s lawyer, Ekele Iheanacho, in the motion marked FHC/ABJ/CS/259/2024, argued that there are ingredients of criminality associated with the operations of Binance in Nigeria, contrary to Sections 38 of the EFCC Act, 2004 and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended).

In an affidavit deposed by an operative of the EFCC, Hamma Bello, he said the Commission needs to conclude its ongoing investigation after having received intelligence of the alleged nefarious activities (money laundering and terrorism financing) on Binance, a cryptocurrency exchange platform.

“That on receipt of the Intelligence, the team began the 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.

“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 $21.6 (twenty-one billion, six hundred million dollars).

“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.

Ruling judge order to Binance

However, Justice Emeka Nwite in his ruling approved the request of the EFCC.

“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,” the judge said.