A Nigerian court has mandated Binance, a leading cryptocurrency exchange platform, to furnish detailed information regarding all Nigerian traders using its platform to the Economic and Financial Crimes Commission (EFCC).
According to local outlet Peoples Gazette, Justice Emeka Nwite issued an interim order following an ex parte motion filed by EFCC lawyer Ekele Iheanacho. The motion was based on provisions within the Economic and Financial Crimes Establishment Act, 2004, and a specific section of the Money Laundering Prevention and Prohibition Act, 2022.
Hamma Bello, an investigator with the EFCC and a member of the Special Investigation Team, revealed that the team received intelligence concerning suspicious activities on Binance’s platform.
Upon receiving this intelligence, the team initiated an investigation into the platform’s activities. They uncovered that traders were utilizing Binance for activities such as price discovery, confirmation, and market manipulation. These actions resulted in significant distortions in the market, leading to the devaluation of the Naira against other currencies, according to Bello.
Bello emphasized that any data provided by Binance would aid the commission in furthering its investigation into these matters.
Nigerian Authorities Demand Information from Binance on Top Users
Earlier this month, Nigerian authorities requested that Binance provide details about its top 100 users in Nigeria. Additionally, the exchange was asked to submit its complete transaction history over the last six months.
Furthermore, Nigeria is contemplating imposing a $10 billion fine on Binance as punishment, alleging that the exchange significantly impacted the local economy. Authorities assert that Binance facilitated unlawful transactions that harmed the country’s interests.
Nigerian Authorities Detain Binance Employees
Two Binance employees are presently detained in Nigeria due to a dispute between the government and the cryptocurrency exchange. They are scheduled to remain in custody until March 20, as per a court ruling.
Their arrest on February 26 followed allegations by the government that Binance had contributed to the crash of the Naira. In response, Binance removed the Naira from its peer-to-peer (P2P) service.
This week, Nigeria’s Securities and Exchange Commission proposed amendments to the regulatory framework governing platforms offering crypto services. Notably, these proposals include a substantial increase in registration fees for exchanges, signaling a more stringent approach to regulating the crypto sector.