In a significant legal development, a Federal High Court in Abuja has directed Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive data on all Nigerian users trading on its platform. Presiding Judge Emeka Nwite granted the ruling on an ex parte motion initiated by Ekele Iheanacho, EFCC’s legal representative, on February 29.
The court order mandates Binance to provide the EFCC with detailed information regarding Nigerian traders on its platform, pursuant to relevant sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022.
In support of the motion, an EFCC operative, Hamma Bello, highlighted concerns over alleged money laundering and terrorism financing activities facilitated through Binance. Bello emphasized the urgent public interest in investigating these activities, citing a substantial trading volume of $21.6 billion from Nigeria on the platform in 2023 alone.
The move comes amidst escalating tensions between Binance and Nigerian authorities. In February 2024, Bayo Onanuga, special adviser to President Bola Tinubu on information and strategy, advocated for the banning of Binance and other cryptocurrency platforms in Nigeria. Onanuga accused Binance of undermining the Central Bank of Nigeria’s role and influencing exchange rates.
Subsequently, CBN Governor Olayemi Cardoso revealed that $26 billion had passed through Binance from unidentified sources, prompting collaborative efforts with regulatory bodies to investigate potential FX market manipulation.
On March 8, Binance ceased naira transactions on its exchange platform following government demands for a $10 billion fine for alleged illegal transactions in Nigeria. Amidst these developments, two top Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, have been detained by Nigerian authorities for several weeks.
The court’s directive underscores the intensifying regulatory scrutiny facing cryptocurrency exchanges in Nigeria and the broader implications for financial transparency and security.
