- Nigerian Federal Court orders Binance to provide comprehensive user data to the Economic and Financial Crimes Commission (EFCC).
- The ruling follows Nigeria’s crackdown on the crypto industry, citing concerns about illegal capital outflows and currency weakening.
- Two senior Binance executives remain detained as the government intensifies its scrutiny of crypto firms operating in Nigeria.
In a significant development amid Nigeria’s crackdown on the crypto industry, a Federal court has ordered Binance to furnish the country’s Economic and Financial Crimes Commission (EFCC) with detailed data on all Nigerian users trading on its platform.
“The applicant’s application dated and filed 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,”
The interim order follows previous demands for information on the platform’s top 100 users and transaction history over the past six months.
Court Grants EFCC’s Motion
Justice Emeka Nwite from the Abuja Division of the Federal High Court granted the motion put forth by EFCC’s lawyer, Ekele Iheanacho. They are seeking information on any Nigerian trading on Binance. The ruling instructs Binance to provide comprehensive data on all individuals from Nigeria engaged in trading activities on its platform.
The Nigerian government has intensified its scrutiny of the cryptocurrency industry. Moreover, it is citing concerns about illegal capital outflows and the weakening of the national currency, the naira. Authorities have targeted Binance specifically, seeking hefty penalties for allegedly facilitating untraceable funds amounting to $26 billion.
In a separate development, Nigerian authorities have detained two senior executives from Binance, who were summoned to discuss the matter. However, the detention, now in its fourth week, underscores the government’s aggressive stance towards crypto firms operating within its jurisdiction. A court hearing for the detained executives is scheduled for Wednesday.
Challenges for Crypto Firms
In addition to user data demands and executive detentions, Nigerian authorities have proposed a 400% increase in registration fees for crypto firms. This is further complicating the landscape for industry players. Binance and the EFCC have yet to respond to requests for comment on the recent court order.
As the legal battle between Binance and Nigerian authorities unfolds, the outcome is likely to have significant implications for the crypto industry within the country and beyond.
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