A federal high court in Nigerian capital Abuja has issued a directive to Binance, instructing it to furnish Nigeria’s Economic and Financial Crimes Commission (EFCC) with comprehensive information regarding Nigerian users on its trading platform.
The move comes in the wake of Nigeria intensifying efforts to curb speculation on its currency, the naira. Last month, Nigeria implemented a ban on several cryptocurrency trading websites, attributing the rapid devaluation of the naira to speculators leveraging crypto trading platforms to establish unofficial exchange rates, media reports said.
Simultaneously, the Nigerian government has been detaining two Binance executives without charge. Among them are Tigran Gambaryan, an American former IRS agent specializing in cryptocurrency tracking, and Nadeem Anjarwalla, a UK citizen serving as the company’s Africa-based regional manager. Sources familiar with the matter revealed that the executives have been held in a government facility since February 26, only permitted to use their phones to contact legal representation and family members.
Scheduled for a court hearing on Wednesday, the executives face the possibility of extended detention, with the EFCC petitioning for such an extension.
Both the EFCC and Binance have yet to comment on the matter. However, the court has endorsed the EFCC’s request for Binance to divulge user data, citing a broader investigation into alleged money laundering and terrorism financing via the platform. Despite claims of intelligence suggesting illicit financial activities, specific evidence has not been disclosed by investigators.
Nigeria’s central bank governor, Olayemi Cardoso, previously expressed concerns regarding crypto exchanges, accusing them of exacerbating speculation and facilitating the circulation of illicit funds. Cardoso cited staggering figures, stating that $26 billion had passed through Binance Nigeria in the past year alone from unidentified sources and users.
In response to the detention of its executives, Binance has suspended all services in Nigeria, including peer-to-peer transactions and trading involving naira, bitcoin, and tether digital coins on its platform.
