Nigerian Court Sets Sights on Binance in Investigation of Forex Manipulation

Binance Holdings, a cryptocurrency platform, has been ordered by a Nigerian High Court to provide the Economic and Financial Crimes Commission (EFCC) with comprehensive data and information about Nigerian traders on its platform. The court order is in response to allegations that Binance played a role in devaluing the Nigerian currency, the Naira.

The EFCC filed an ex parte motion against Binance, which means that only one party is present in court and the defense is not given prior notice of the motion. The motion argues that Binance’s activities in Nigeria have elements of criminality. The EFCC operative stated in an affidavit that the agency received information about alleged money laundering and terrorism financing involving Binance and needs to conclude its ongoing investigation.

The EFCC found that users were engaging in illegal activities such as price manipulation and market distortion on the Binance platform, which led to significant devaluation of the Naira against other currencies. The Nigerian government has demanded information on Binance’s top 100 local users and six-month transaction records, claiming that the platform has hindered their efforts to strengthen the national currency.

Nathaniel Luz, CEO of Flincap, suggested that instead of a court order, a roundtable conversation between Binance and the Nigerian government would be the best approach. Bayo Onanuga, the presidential adviser on information and strategy, even proposed banning platforms like Binance in the country.

Nigeria has been cracking down on the crypto industry to prevent illegal capital outflows, which have weakened the Naira against the dollar. The government has accused Binance of enabling $26 billion of untraceable funds and has demanded $10 billion in penalties. Meanwhile, two Binance executives are still detained in Nigeria for investigations.

Tags:
Binance
Crypto Regulations