Nigerian Court Directs Crypto Giant Binance to Share User Data with EFCC

A Nigerian High Court has instructed Binance, the top global crypto exchange, to share its Nigerian users' data with the Economic and Financial Crimes Commission (EFCC).

This action is part of an investigation into money laundering and terrorist funding accusations, alongside concerns over the naira's devaluation.

Judge Emeka Nwite made this decision following a request from the EFCC's lawyer, Ekele Iheanacho. This ruling aligns with Nigeria's broader efforts to stabilize its currency, which authorities say is being undermined by Binance's operations.

Previously, the Nigerian government had sought information on Binance’stop 100 local users and their transactions over six months. The court’s new order requires Binance to disclose all Nigerian users' data, raising the stakes in the scrutiny against the exchange for alleged financial crimes.

Hamma Bello, an EFCC official, reported to the court about market manipulation incidents on Binance that affected the naira's value. He emphasized the need for Binance to stop listing the naira and to reveal how Nigerians use the platform, which is believed to be pivotal for a deeper EFCC investigation.

With Binance's 2023 trading volume in Nigeria at $21.6 million, the information could significantly aid the EFCC. Additionally, the detention of two Binance executives in Nigeria highlights the serious approach taken by Nigerian authorities in this matter.

This court order marks a critical juncture in the regulatory oversight of cryptocurrency exchanges like Binance, particularly in regions grappling with economic and financial stability challenges.