A Federal High Court in Nigeria has recently issued an order to Binance, the world’s largest cryptocurrency exchange, to provide comprehensive data on all local users trading on its platform to the Economic and Financial Crimes Commission (EFCC). This decision comes as part of the government’s crackdown on Binance for its alleged involvement in the devaluation of the naira. Judge Emeka Nwite of the Abuja Division of the Federal High Court granted the order after the EFCC’s lawyer, Ekele Iheanacho, presented an ex parte motion. Last week, the Nigerian government had requested information on Binance’s top 100 local users and their transaction records for the past six months, citing the platform’s impact on the national currency.
Authorities in Nigeria have accused Binance of hindering their efforts to strengthen the naira and have raised concerns about money laundering and terrorism financing on the platform. The court’s order requires Binance to submit data related to all Nigerian users, allowing the EFCC to conduct a more thorough investigation. During the court hearing, an EFCC operative, Hamma Bello, reported instances of price manipulation and market disruption on Binance, resulting in the devaluation of the naira. Bello highlighted the agency’s previous communication with Binance regarding these issues, indicating that the platform was asked to delist the naira and provide information on Nigerian users’ activities.
Information obtained from Binance revealed a significant trading volume of $21.6 million from Nigeria in 2023, prompting further scrutiny from the EFCC. The data requested under the court order will aid in conducting a more extensive investigation into Binance’s operations in Nigeria. Additionally, the report mentions that two foreign Binance executives are currently detained in Nigeria as part of the ongoing investigations.
The Nigerian government’s actions against Binance reflect a broader effort to regulate cryptocurrency exchanges and curb illicit financial activities. The court order for data disclosure underscores the authorities’ determination to address concerns related to the devaluation of the naira and potential criminal activities facilitated through crypto platforms. As the investigation unfolds, the outcome could have significant implications for Binance’s operations in Nigeria and its compliance with local regulations.