EECC Gains Order to Go after Binance Acquires Data of All Crypto Traders in Nigeria

Binance, the largest cryptocurrency platform, has come to light again. The Federal High Court in Abuja has ordered the firm to provide comprehensive information to the Economic and Financial Crimes Commission (EFCC) on all persons from Nigeria trading on its platform.

The high court issued the order in response to an ex-parte motion filed by the EFCC demanding information about Nigerians trading on Binance.

The suit, marked FHC/ABJ/CS/259/2024 and dated February 29, according to the anti-graft agency, 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).

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Hamma Bello stated that the commission's Special Investigation Team, domiciled in the Office of the National Security Adviser, received intelligence that money laundering and terrorism financing were carried out on Binance.

He said,

"The Special Investigation Team of the commission, domiciled in the Office of the National Security Adviser, received intelligence stating nefarious activities (money laundering and terrorism financing) on Binance, a cryptocurrency exchange platform.

"On receipt of the intelligence, the team began an investigation by surveilling the platform's activities.

"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."

Bello also stated that his team uncovered some users whose activities on Binance caused the country's currency to lose value against other currencies.

He added, 

"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 inform the ONSA of the Nigerians' activities on their platform.

"The information afforded to the team by Binance shows that trading volume from Nigeria in 2023 alone stood at $21.6bn.

"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 stated that the requested data would help the commission complete its investigation.

According to a certified true copy of the ruling, which was delivered on February 29 but sighted by journalists on Monday, Justice Emeka Nwite granted the interim order.

Nwite said, 

"The applicant's application dated and filed on February 29, 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 and information relating to all persons from Nigeria trading on its platform."