A Nigerian High Court has reportedly ordered Binance Holdings to provide the Economic and Financial Crimes Commission (EFCC) with comprehensive data and information relating to all persons from Nigeria who are trading on its platform for its role in devaluing Naira.
Ex Parte Motion Filed
An ex parte motion was filed against Binance by the EFCC. An ex-parte motion is one in which only one party is present, and the defense is not given prior notice of the motion, preventing them from presenting an argument.
In the motion, the lawyer representing the anti-graft agency, Ekele Iheanacho, contended that Binance’s activities in Nigeria have elements of criminality. In an affidavit, EFCC operative Hamma Bello stated the need to conclude its ongoing probe after receiving information on alleged money laundering and terrorism financing involving Binance.
The EFCC team discovered that users were using the cryptocurrency platform for illegal activities such as price discovery, confirmation, and market manipulation, which resulted in significant distortions in the foreign exchange market and significantly devalued the naira against other currencies.
The aftereffects of these activities on the Nigerian economy were also communicated clearly to Binance operators, which led to the delisting of the Nigerian Naira from Binance’s trading platform.
The Nigerian government recently demanded information on Binance’s top 100 local users and six-month transaction records. The authorities claimed that the trading platform significantly hindered their attempts to strengthen the national currency.
Round Table Conversation Suggested By Flincap CEO
Nathaniel Luz, CEO of Flincap, said that although this court order is advantageous for the Nigerian government, the best course of action would be to have a roundtable conversation between Binance and the Nigerian government. Bayo Onanuga, the presidential adviser on information and strategy, suggested banning platforms like Binance in the country.
Nigeria has taken action against the crypto industry for facilitating illegal capital outflows, which purportedly led to the Nigerian naira weakening against the dollar. The nation’s authorities have taken a particular interest in Binance’s operations, demanding $10 billion in penalties for enabling $26 billion of untraceable funds.
Notably, the two foreign Binance executives are still detained in Nigeria for investigations.