- Nigerian authorities have secured a court order for Binance to disclose Nigerian traders’ data
- Authorities have demanded $10 billion in penalties from Binance for alleged involvement in moving $26 billion of untraceable funds.
- Two Binance execs arrested in the country face court today
Nigeria’s Economic and Financial Crimes Commission (EFCC) has secured an interim court order compelling Binance to provide detailed information on all Nigerian traders active on its platform. This directive follows previous requests from Nigeria for data on the top 100 users and six months of transaction history. However, Justice Emeka Nwite of the Federal High Court in Abuja has now granted the EFCC’s motion, signaling a broader scope in seeking information on any Nigerian trading through Binance.
Nigeria Continues Crypto Crackdown
Nigerian authorities have taken a tough stance against various operators in the sector in an attempt to alleviate a currency crisis that has gripped the country. The crypto sector has been particularly badly affected and the effort has ratcheted up a notch with the EFCC, Nigeria’s leading financial crimes investigation agency, initiating legal proceedings against Binance.
The court’s decision aligns with Nigeria’s broader crackdown on the crypto industry, which authorities accuse of facilitating illegal capital outflows, contributing to the weakening of the Nigerian naira against the dollar. It also comes against the backdrop of two Binance executives still being detained against their will by Nigeria’s National Security Agency, who face a court hearing today over the matter.
$10 Billion Demanded
Nigeria has demanded significant penalties totaling $10 billion from Binance, citing its alleged involvement in enabling the movement of approximately $26 billion of untraceable funds. This heightened scrutiny has led to the detention of two senior Binance executives who were summoned to Nigeria for discussions on the matter.
In addition to legal actions against Binance, Nigerian authorities are proposing a substantial 400% increase in registration fees for crypto firms, aiming to impose stricter regulations on the burgeoning industry within the nation’s borders.
Neither Binance nor the EFCC has provided any comment over the escalation, leaving the situation and its potential implications for Nigeria’s crypto sector uncertain.
