A Nigerian high court has ordered Binance to provide the Economic and Financial Crimes Commission (EFCC) with comprehensive data relating to all Nigerian traders on its platform. The EFCC alleges it has discovered instances of price discovery, confirmation, and market manipulation on the Binance platform.
Binance Violates Nigerian Anti-Money Laundering Laws
In a fresh development in the ongoing dispute between the Nigerian government and Binance, a court in Abuja has directed the cryptocurrency exchange to provide user data to the Economic and Financial Crimes Commission (EFCC). According to a report, the court’s ruling relates to an ex parte motion filed on Feb. 29 by the legal representative of the EFCC.
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In the motion, the EFCC team argued that Binance’s operations had elements of criminality, thereby violating the EFCC Act of 2004 and anti-money laundering laws. Furthermore, an affidavit sworn by an EFCC agent named Hamma Bello stated that acquiring Binance’s user data would allow the Nigerian anti-corruption agency to complete its investigation.
In granting the interim order, Justice Emeka Nwite of the Abuja Federal High Court said:
The applicant’s application dated and filed 29th February 2024, is hereby granted as prayed. That an order of this honourable 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.
As previously reported by Bitcoin.com News, Nigerian authorities have in recent weeks repeatedly accused Binance of facilitating activities that led to a rapid depreciation of the local currency. This accusation subsequently saw authorities initiate an investigation and ultimately demand the identities and transaction histories of Binance’s users.
Binance Users Face Allegations of Market Manipulation from Regulators
Before the court ruling, Binance reportedly refused to comply with the demands of the Nigerian government. However, in his affidavit, Bello explained how an investigation revealed instances in which users were allegedly caught manipulating the exchange rate.
“The 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,” Bello said.
The EFCC agent stated not only informed about this but was also instructed to delist the naira. The cryptocurrency exchange has since removed all trading pairs that include the naira.
Source: Bitcoin
