Court orders Binance to release identity of terrorism financiers on its platform to EFCC
A Federal High Court sitting in Abuja has ordered Binance Holdings Limited to release the identity of terrorism financiers and individuals laundering money via its platform to the Economic and Financial Crimes Commission (EFCC).
Recall that investigations by the Technical Committee on Currency Stability and Forex Manipulation by the Office of the National Security Adviser (ONSA) had uncovered that the Binance Platform was being deployed for money laundering and terrorism financing.
This subsequently led to the delisting of the naira on the platform and the ban on the app and similar cryptocurrency applications by the Central Bank of Nigeria (CBN).
Justice Emeka Nwite granted the interim order after ruling on the ex-parte motion moved by the EFCC’s lawyer, Ekele Iheanacho.
“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,” the judge ordered.
The interim order was granted to enable the anti-graft agency to unravel the alleged money laundering and terrorism financing on Binance, a cryptocurrency exchange platform.
A certified true copy of the ruling, which was delivered on Feb. 29, was sighted on Monday.
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 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).
Bello averred that, following the inauguration of the Technical Committee on Currency Stability and Forex Manipulation by the ONSA, the SIT “received an intelligence report stating the nefarious activities (money laundering and terrorism financing) on Binance, a cryptocurrency exchange platform.”
“That on receipt of the intelligence, the team began 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 of 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 that the matter was of utmost urgent public interest, said the data provided would enable the commission to accomplish its investigation activities.
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.
