The court order was issued to facilitate the EFCC to uncover the allegations of money laundering and terrorism financing on the Binance platform.
A Federal High Court in Nigeria has mandated Binance to furnish comprehensive data regarding all its Nigerian users to the nation’s leading anti-corruption agency, the Economic and Financial Crimes Commission (EFCC).
This ruling emerges amidst escalating tensions between the cryptocurrency exchange and Nigerian authorities in recent weeks.
Nigeria attributes its unstable economic situation to Binance, alleging that the exchange has contributed to the instability of the Naira by enabling individuals to transfer their funds into cryptocurrency.
Why Was the Court Order Granted?
The directive was issued as a part of the Nigerian government’s thorough probe into Binance’s activities within the country.
Read Also: Nigeria’s SEC Plans to Hike Registration Fees for Cryptocurrency Exchanges
Officials have leveled allegations against the exchange, asserting that it has aggravated the nation’s foreign exchange challenges by engaging in rate manipulation for individual benefit. As a result, access to the exchange’s official website has been restricted, and two high-ranking executives have been detained.
A court affidavit sworn to by an EFCC official reportedly stated:
“The [EFCC] 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.”
Furthermore, according to the affidavit, Binance recorded a total trading volume of $21.6 billion from Nigeria last year.
In light of this, Nigerian authorities petitioned the Federal High Court to mandate Binance to divulge user data for investigative purposes.
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