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Federal High Court Orders Binance to Share Nigerian Traders’ Data with EFCC Over Terrorism Financing Allegations

Binance Holdings Limited has been ordered by a Federal High Court in Abuja to supply detailed information on Nigerian traders on its platform to the Economic and Financial Crimes Commission (EFCC). This interim order, granted following an ex-parte motion by the EFCC’s lawyer, aims to aid in probing allegations of money laundering and terrorism financing against the cryptocurrency exchange platform.

Published

1 month ago

March 18, 2024

Stella Charles Akupue

Federal High Court Orders Binance to Share Nigerian Traders' Data with EFCC Over Terrorism Financing Allegations

A Federal High Court in Abuja has ordered Binance Holdings Limited to provide detailed information on Nigerian traders on its platform to the Economic and Financial Crimes Commission (EFCC) amid allegations of terrorism financing and money laundering.

Justice Emeka Nwite granted the interim order following his ruling on the ex-parte motion presented by EFCC’s lawyer, Ekele Iheanacho. The applicant’s application, dated and filed on 29 February 2024, is 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,” Nwite said.

Court Orders Binance to Share Data with EFCC

According to the News Agency of Nigeria, an interim order was issued to aid the anti-graft agency in probing allegations of money laundering and terrorism financing against Binance, a cryptocurrency exchange platform.

The ex-parte motion, marked FHC/ABJ/CS/259/2024, was brought under Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004 and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended) and the inherent powers of the court.

An EFCC operative, Hamma Bello, stated in an affidavit that the commission’s Special Investigation Team received intelligence on alleged money laundering and terrorism financing activities on Binance, a cryptocurrency exchange platform.

Bello said, “On receipt of the Intelligence, the team began an investigation by surveilling the platform’s activities.

Interim Order Granted by Justice Emeka Nwite

“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 platform operators, 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).” Bello emphasized the urgency and public interest of the matter, requesting cooperation for swift investigation to prevent hindrance to their efforts.

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