Court Orders Binance To Release Data To EFCC Over Alleged Terrorism Financing
The Federal High Court in Abuja has issued a compelling mandate to Binance Holdings Limited, the renowned global cryptocurrency entity, to divulge comprehensive information regarding its most influential users within Nigeria.
This order, issued by Justice Emeka Nwite, comes as a response to an ex parte motion presented by the Economic and Financial Crimes Commission (EFCC), represented by lawyer Ekele Iheanacho.
The ruling, delivered following a meticulous review of the motion, signals a decisive move by Nigerian authorities to bolster oversight and regulation within the cryptocurrency space, particularly concerning potential illicit activities.
Justice Nwite’s order, while interim in nature, holds considerable weight, instructing Binance to furnish the EFCC with detailed records pertaining to Nigerian traders utilizing its platform. The directive is poised to facilitate a comprehensive investigation into suspected cases of money laundering and terrorism financing reportedly linked to Binance’s operations within the Nigerian market.
“The applicant’s application dated and filed 29th February, 2024, is hereby granted as prayed,” affirmed Justice Nwite during the court proceedings.
“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.”
The EFCC, in its affidavit supporting the motion, underscored the urgency of the investigation, citing intelligence suggesting nefarious activities, including money laundering and terrorism financing, being perpetrated on the Binance platform. Hamma Bello, an operative of the EFCC’s Special Investigation Team (SIT) attached to the Office of the National Security Adviser (ONSA), provided crucial insights, shedding light on the gravity of the situation.
“In the affidavit in support of the motion deposed to by Hamma Bello, an operative of the EFCC, he said he was attached to the Special Investigation Team (SIT) of the commission domiciled in the Office of the National Security Adviser (ONSA). Mr. Bello averred that, following the inauguration of the Technical Committee on Currency Stability and Forex Manipulation by the ONSA, the SIT received intelligence stating the nefarious activities (money laundering and terrorism financing) on Binance.”
This judicial action against Binance aligns with broader efforts by Nigerian regulatory authorities to address concerns surrounding the burgeoning cryptocurrency sector. Notably, the Securities and Exchange Commission had previously issued warnings regarding Binance Nigeria Limited’s unregistered and unauthorized operations within the country.
Against this backdrop, Binance’s decision to discontinue naira services in Nigeria, coupled with recent arrests of its officials in the country, underscores the escalating tensions between regulatory authorities and cryptocurrency entities operating within Nigerian borders.
As stakeholders await further developments in this ongoing legal saga, the outcome of the EFCC’s investigation into Binance’s operations is poised to have far-reaching implications for the cryptocurrency landscape in Nigeria and beyond.
