Money laundering: Court orders Binance to disclose names of users to EFCC

A Federal High Court in Abuja has ordered Binance Holdings Limited to provide the Economic and Financial Crimes Commission with comprehensive information on all persons from Nigeria trading on its platform.
The court handed down the order in 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).
In the affidavit in support of the motion deposed to by an operative of the EFCC, Hamma Bello, he stated that the Special Investigation Team of the commission domiciled in the Office of the National Security Adviser received intelligence that money laundering and terrorism financing was carried out on Binance.
He said, “The Special Investigation Team of the commission domiciled in the Office of the National Security Adviser received an intelligence stating the nefarious activities (money laundering and terrorism financing) on Binance, a cryptocurrency exchange platform."
“That on receipt of the intelligence, the team began an investigation by conducting surveillance of the activities of the platform."
Bello also said the team uncovered some users whose activities on Binance resulted in the country’s currency losing its value against other currencies.
He said, “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 operators of the platform, and they were requested to delist the Naira and avail the ONSA on the activities of the Nigerians on their platform."
“That from the information afforded to the team by Binance shows 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.
White said, “The applicant’s application dated and filed 29th February 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/information relating to all persons from Nigeria trading on its platform.”
Binance is an online exchange where users can trade cryptocurrencies.
The Central Bank of Nigeria Governor, Olayemi Cardoso, at a press briefing after the 293rd meeting of the Monetary Policy Committee in Abuja on February, disclosed that more than 26bn was channelled through Binance without traces in the last year.
Financial Times had on February 28 reported that two executives of the company were arrested and detained after they flew into the country as a result of a ban on their website.
On March 12, 2024, the FT reported that the EFCC asked Binance to share data on its 100 top users in Nigeria as well as all transaction history for the past six months.
According to the report, the request is at the centre of negotiations between Binance and Nigeria.