Federal High Court’s Interim Order
In a significant development, the Federal High Court in Abuja has issued an interim order directing Binance Holdings Limited to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive data on individuals from Nigeria engaged in trading on its platform.
Ruling Details
Justice Emeka Nwite granted the interim order following an ex-parte motion presented by the EFCC’s lawyer, Ekele Iheanacho. The order mandates Binance to provide detailed information regarding Nigerian traders on its platform.
Purpose of the Order
The interim order aims to aid the EFCC in investigating alleged instances of money laundering and terrorism financing linked to Binance, a prominent cryptocurrency exchange platform.
Legal Basis for the Motion
The ex-parte motion, labeled FHC/ABJ/CS/259/2024, was filed under various sections of the Economic and Financial Crimes Establishment Act, 2004, the Money Laundering (Prevention and Prohibition) Act, 2022, and the court’s inherent powers.
Affidavit by EFCC Operative
Hamma Bello, an operative of the EFCC attached to the Special Investigation Team (SIT), deposed to an affidavit supporting the motion. He detailed the commission’s efforts to investigate activities on the Binance platform, citing intelligence reports of illicit financial activities.
Investigation Findings
The investigation revealed users engaging in price discovery, confirmation, and market manipulation, leading to significant distortions in currency markets, particularly affecting the Nigerian Naira.
Request to Binance
The EFCC informed Binance of the adverse effects of these activities and requested delisting of the Naira. Additionally, the commission sought detailed information on Nigerian users’ activities on the platform.
Trading Volume Data
Binance provided information indicating that Nigerian trading volume in 2023 amounted to $21.6 billion, underscoring the scale of cryptocurrency transactions in the country.
Urgency and Public Interest
Bello emphasized the urgent public interest in the matter, stressing that timely access to trading data is crucial for the EFCC’s investigation efforts.
In Conclusion,the court’s decision to grant the interim order underscores the importance of collaboration between regulatory agencies and cryptocurrency platforms in combating financial crimes.
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CREDIT: DORIS Chinwe Omemgbeoji