Nigerian government freezes $37 million in cryptocurrencies

The Nigerian government has taken a new step in its ongoing crackdown on cryptocurrencies. The government has now decided to freeze $37 million worth of virtual assets held in digital wallets.

This move marks a tightening of cryptocurrency regulatory efforts. In addition, authorities are still pursuing their case against Binance for allegedly contributing to the devaluation of the local currency, the naira.

According to the government, the cryptocurrency blockade is aimed at disrupting financial support for a recent wave of protests across the country.

Cryptocurrency crackdown

The central element of this application in Nigeria was outlined in a briefing given by National Security Adviser Nuhu Ribadu to a government council headed by President Bola Tinubu.

Ribadu announced that Nigerian authorities have successfully obtained a court order to freeze $37 million worth of cryptocurrency. In total, the wallets targeted by the government hold about $50 million, but authorities have not been able to gain full access.

These cryptocurrencies were allegedly used to finance protests against the rising cost of living in the country. The protests began this month and people are complaining about inflation and poor political management in the country.

Because the government tightly controls the banking system, protest supporters used cryptocurrencies as a way to offer donations. However, many did so via exchanges, which made it easier for authorities to block them.

A detailed report by Premium Times revealed that the court order, issued in the country’s capital Abuja, concerns four cryptocurrency wallets. These addresses hold around 37 million USDT.

The Economic and Financial Crimes Commission (EFCC), Nigeria’s anti-corruption and financial crimes unit, has alleged that these wallets are linked to individuals under investigation for money laundering and terrorist financing. However, the exact nature of the investigation and its link to the protests remain unclear.

The timing of the freezing order, granted on August 9, coincides closely with the peak of the protests. However, official documentation did not explicitly connect the wallets to the protest activities. The EFCC has yet to provide a comprehensive explanation for the connection between the cryptocurrency wallets and protest funding.

Nigeria vs Binance

Since February, the Central Bank of Nigeria (CBN) has been warning about cryptocurrency platforms like Binance, accusing the exchange of facilitating illicit financial flows and contributing to the destabilization of the naira, Nigeria’s national currency.

This regulatory push has led to broader measures, including restricting access to cryptocurrency trading platforms and the arrest of several high-profile figures associated with the industry.

Among those affected by the regulatory crackdown is Binance executive Tigran Gambaryan, who has been detained in Kuje Prison since February 26. Gambaryan was arrested during a meeting with Nigerian officials in Abuja. His colleague, Nadeem Anjarwalla, managed to escape but was captured in Kenya.

Furthermore, his family recently expressed urgent concerns about the Binance executive’s deteriorating health and are calling for his immediate release.

Finally, the government accuses Binance of moving US$35 million in alleged money laundering activities, which the exchange denies.

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