In a recent development, a Nigerian High Court has issued a directive to Binance Holdings, instructing them to furnish the Economic and Financial Crimes Commission (EFCC) with comprehensive data regarding Nigerian traders on its platform.
Legal Proceedings and Motion Details
The interim ruling, issued by Justice Emeka Nwite on Feb. 29, follows an ex parte motion filed against Binance by the EFCC. An ex parte motion involves only one party presenting arguments, without prior notice to the opposing party.
Representing the anti-graft agency, lawyer Ekele Iheanacho argued that Binance’s activities in Nigeria raise concerns of criminality. This assertion is based on legal statutes such as Sections 38 of the EFCC Act, 2004, and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022.
Allegations and Investigation on Binance
In an affidavit, EFCC operative Hamma Bello cited intelligence on alleged money laundering and terrorism financing involving the Binance platform. The EFCC claims to have discovered users engaging in illegal activities like price manipulation and market distortion, leading to adverse effects on the Nigerian economy.
The EFCC highlighted the significant distortions in the foreign exchange market caused by these activities, resulting in the further devaluation of the naira against other currencies. Consequently, the EFCC requested Binance to delist the naira from its trading platform.
