Nigeria Freezes $38 Million in Alleged Protest Funds Held in Cryptocurrency

• The Nigerian government has frozen $38 million of cryptocurrency allegedly sent to support recent protests.
• Authorities in Nigeria tracked the movement of $50 million in crypto intended to back the protests.
• Approximately $38 million has been frozen following a ruling by Nigeria’s highest court.

Nigeria Freezes $38 Million in Crypto Linked to Protest Support

Nigerian Authorities Target Protest-Linked Cryptocurrency

The Nigerian government has taken decisive action against cryptocurrency donations linked to recent protests. In a significant move, Nigeria’s Federal High Court in Abuja ordered the freezing of four cryptocurrency wallets tied to the End Bad Governance protests. The ruling came following a submission by the Economic and Financial Crimes Commission (EFCC), which sought to halt the financial support flowing into the protests.

Economic and Security Implications of the Crypto Freeze

During a State Council meeting convened by President Bola Tinubu, National Security Advisor Nuhu Ribadu revealed that the government successfully traced $50 million in cryptocurrency donations. Of this, $38 million located in four specific wallets has been frozen. The freeze aims not only to curb the financial lifeline of the protests but also to address broader economic concerns. Experts argue that the declining value of the naira, which has fallen against the dollar over the past year, is partially attributed to rampant cryptocurrency trading. Nigeria has been grappling with inflation, which reached a 28-year high, thus intensifying the government’s scrutiny of crypto transactions.

Historical Context and Government Actions Against Crypto

Earlier this year, Central Bank of Nigeria Governor Olayemi Cardoso highlighted serious concerns over cryptographic financial activities. He stated that cryptocurrency exchange Binance was implicated in allowing $26 billion to go unaccounted for, impacting tax revenues. This led to Binance official Tigran Gambaryan being detained for questioning. The ongoing measures taken by Nigerian authorities against cryptocurrency signify an escalating effort to stabilize the financial system and clamp down on illicit financial flows.

Conclusion

The Nigerian government’s freezing of $38 million in cryptocurrency associated with the protests marks a significant intervention in regulating financial activities tied to social unrest. As Nigeria faces economic challenges exacerbated by fluctuating currency values and soaring inflation, the crackdown on crypto transactions is seen as a crucial step towards restoring financial stability. Moving forward, this development is likely to prompt increased regulatory scrutiny on cryptocurrency activities in the country.