A Nigerian court ordered Binance to furnish detailed information regarding all Nigerian traders on its platform to the Economic and Financial Crimes Commission (EFCC).
Local outlet Peoples Gazette reported Monday that Justice Emeka Nwite issued the interim order following EFCC lawyer Ekele Iheanacho’s ex parte motion. The ex parte motion was filed under the Economic and Financial Crimes Establishment Act, 2004, and a specific section of the Money Laundering Prevention and Prohibition Act, 2022.
Hamma Bello, an investigator with the EFCC and a member of the Special Investigation Team, reportedly said that the team received intelligence about nefarious activities on Binance.
Upon receipt of the intelligence, the team began an investigation into the platform’s activities. They found that traders on the platform were using it for activities like price discovery, confirmation, and market manipulation. These actions led to significant distortions in the market, causing the Naira to lose value against other currencies, according to Bello.
Any data Binance provides would help the commission further its investigation into these matters, Bello said.
Binance didn’t return Cryptonews’ request for comment by press time.
Nigerian Authorities Demand Information from Binance on Top Users
Earlier this month, Nigerian authorities asked Binance to furnish details about its top 100 users in Nigeria. The exchange was also asked for its complete transaction history over the last six months.
Additionally, Nigeria is considering a $10b fine on Binance as punishment, citing that the exchange significantly impacted the local economy. Authorities allege that Binance facilitated unlawful transactions that harmed the country’s interests.
Nigerian Authorities Detain Binance Employees
Two Binance employees are currently detained in Nigeria due to a dispute between the government and the cryptocurrency exchange. They are scheduled to stay in custody until March 20 as per a court ruling.
They were arrested on Feb. 26 after the government accused Binance of crashing the Naira. Following this, Binance removed the Naira from its peer-to-peer (P2P) service.
This week, Nigeria’s Securities and Exchange Commission proposed modifications around the regulatory framework for platforms providing crypto services. Among them was a significant increase in registration fees for exchanges. This move indicates a stricter approach to regulating the crypto sector.
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