Nigerian Court Orders Binance to Provide User Data to Financial Crimes Commission
In a recent development, a Nigerian court has directed cryptocurrency exchange Binance to furnish the nation’s Economic and Financial Crimes Commission (EFCC) with detailed information on all Nigerian users trading on its platform.
Justice Emeka Nwite from the Abuja Division of the Federal High Court issued the interim order. Also, this comes in response to a motion filed by the EFCC’s lawyer, Ekele Iheanacho, according to a report by a local news outlet.
Key highlights:
- A Nigerian court has issued an order requiring Binance to furnish comprehensive data on all Nigerian users.
- The order follows an earlier report that Nigeria had requested information on Binance’s top 100 users in the country.
- Nigeria has initiated measures against the crypto industry over allegations of enabling illegal capital outflows.
- Binance faces $10 billion in penalties for allegedly enabling $26 billion of untraceable funds.
- Authorities in Nigeria detained two of Binance’s senior executives after inviting them to discuss the situation.
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According to local news outlet Peoples Gazette, the court order states, “The applicant’s application dated and filed on February 29, 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.”
Nigeria’s law enforcement had previously sought Binance user information
The EFCC, Nigeria’s law enforcement agency responsible for investigating financial crimes, had previously sought information on Binance’s top 100 users in the country and their transaction history spanning the past six months.
Nigeria’s actions against the crypto industry stem from allegations that it has facilitated illegal capital outflows. Additionally, this is believed to have contributed to the Nigerian naira’s weakening to record lows against the dollar.
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The nation’s authorities have taken a particular interest in Binance’s operations. In addition, they demanded $10 billion in penalties for allegedly enabling $26 billion of untraceable funds to flow through its platform.
In a related event, Nigerian authorities detained two senior executives from Binance after inviting them to discuss the matter. According to Reuters, the detained executives’ court hearing is on Wednesday. Furthermore, Nigerian authorities have proposed a substantial 400% increase in registration fees for crypto firms operating in the country.
