A Federal High Court, Abuja has directed 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.
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.
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Bello added,
- “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.”
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What the judge said
In his ruling, Justice Emeka Nwite 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.
More insight
- A motion-exparte can be heard without the argument of a suspect or defense but that is based on the discretion of a presiding judge.
- Binance is a cryptocurrency exchange platform.
- However, the platform has been recently accused by agencies of the federal government of violating relevant laws in the country.