Alleged Terrorism Financing: Court Orders Binance to Release Data to EFCC

Justice Emeka Nwite of a Federal High Court in Abuja has ordered Binance Holdings Limited to provide a comprehensive data or information of all persons from Nigeria trading on its platform to the Economic and Financial Crimes Commission (EFCC).

Nwite made the order while ruling in an ex-parte application filed by EFCC.

After listening to the anti-graft agency’s lawyer, Mr Ekele Iheanacho, the judge, who granted the application as prayed, held 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 interim order, which was granted on February 29, was to enable the anti-graft agency to unravel the alleged money laundering and terrorism financing by Binance, a crypto currency exchange platform.

The ex-parte motion, marked: FHC/ABJ/CS/259/2024, was brought pursuant to 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) and the inherent powers of the court.

In the affidavit in support of the motion deposed to by Hamma Bello, an operative of EFCC, and attached to the Special Investigation Team (SIT) of the commission domiciled in the Office of the National Security Adviser (ONSA), the deponent disclosed that they had received information about some persons who were using Binance to manipulate the foreign exchange market.

Bello said their discovery followed the inauguration of the Technical Committee on Currency Stability and Forex Manipulation by the ONSA.

He said the SIT “received an intelligence stating the nefarious activities (money laundering and terrorism financing) on Binance, a crypto currency exchange platform.

“That on receipt of the Intelligence, the team began an investigation by conducting surveillance of the activities of the platform.

“That 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.

“That 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 that the total trading volume from Nigeria in 2023 alone stood at $21.6 (twenty one billion, six hundred million dollars).

“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, who said the matter was of utmost urgent public interest, said the data provided would enable the commission to accomplish its investigation.

He said it was in the interest of justice to grant the application as refusal of the request would largely hamper the commission’s investigation.

Alex Enumah

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