A Federal High Court in Nigeria has ordered the world’s largest cryptocurrency exchange, Binance, to release comprehensive data of all local users trading on its platform to the Economic and Financial Crimes Commission (EFCC) as the clampdown on the firm for its alleged role in the devaluation of the naira continues.
According to a report from local media Peoples Gazette, Judge Emeka Nwite of the Abuja Division of the Federal High Court granted the order after ruling on the ex parte motion moved by the EFCC’s lawyer, Ekele Iheanacho.
Binance to Give User Data to The Nigerian EFCC
Last week, the Nigerian government demanded information on Binance’s top 100 local users and transaction records for the past six months. Authorities in the country claimed the trading platform was a major hindrance to its attempts to strengthen the national currency.
Following the court’s latest order, Binance is expected to submit data relating to all of its Nigerian users. The firm is also under scrutiny for allegations of money laundering and terrorism financing.
“The applicant’s application dated and filed 29th February, 2024, is hereby granted as prayed. That an order of this honorable 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,” Judge Nwite ordered.
Binance Execs Still Detained in Nigeria
During the hearing, Hamma Bello, an EFCC operative who filed an affidavit in support of the motion against Binance, told the court that the agency received reports of price discovery, confirmation, and market manipulation on the crypto exchange, which caused the naira to lose 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,” Bello stated.
Information previously received from Binance revealed that the exchange saw a trading volume of $21.6 million from Nigeria in 2023. Bello said the data to be obtained will enable the EFCC to conduct a deeper investigation on Binance.
Meanwhile, two foreign Binance executives are still being detained in Nigeria for the sake of investigations.
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