Crypto Funds Frozen: Court Halts $38M Allegedly Meant For Nigeria Protests

A Nigerian court has ordered the freezing of nearly $40 million in crypto funds believed to have been used to support nationwide protests against the government. The ruling, amid heightened tensions over the rising cost of living in Africa’s most populous nation, has sparked concerns over the authorities’ response to civic unrest.

Anti-Graft Agency Freezes $38 Million

According to local media reports, the Economic and Financial Crimes Commission (EFCC), Nigeria’s top anti-corruption agency, alleged that the frozen assets represent the “proceeds of money laundering and terrorism financing.” However, details on the specific individuals or groups whose wallets were targeted have not been disclosed.

Insiders familiar with the case told reporters that the government believes the funds can be traced to suspected organizers of the #EndBadGovernance protests – a series of demonstrations that swept across Nigeria in early August.

From August 1-10, the protests saw Nigerians take to the streets to voice their frustrations over the country’s worsening economic crisis, including skyrocketing inflation, unemployment, and widespread poverty. 

Security forces were accused of using excessive force, with reports of over 20 protesters killed during the demonstrations. Authorities have since taken a hard line, arresting suspected protest organizers and those believed to have committed crimes under the guise of the rallies.

Nigeria’s Crypto Clampdown

This is not the first time the Nigerian government has moved to restrict the financial resources of anti-government activists. In 2020, during the widespread #EndSARS protests against police brutality, authorities successfully obtained a court order to freeze the accounts of key protest organizers, alleging links to terrorist financing.

While the government maintains that the current cryptocurrency freeze is part of legitimate investigations into money laundering and terrorism, critics have condemned the move as a blatant attempt to stifle dissent and undermine the public’s right to assemble peacefully.

The latest crackdown on crypto-based support for the protests highlights the Nigerian government’s growing unease with using digital assets to circumvent traditional financial controls. 

Experts warn that such heavy-handed tactics could further undermine public trust and push more Nigerians to seek alternative, decentralized means of organizing and fundraising.

This increased scrutiny of the industry has caught up with the world’s largest exchange by trading volume, Binance, where a top executive, Tigran Gambaryan, is in critical condition in a Nigerian prison. His health has reportedly been in a downward spiral since his arrest earlier this year. 

Gambaryan is facing serious money laundering charges along with the exchange. The Nigerian government accuses him and another executive, Nadeem Anjarwalla, of laundering more than $35 million.

Amid a broader consolidation phase for the largest digital asset after a deep correction of over 20% in early August, the total crypto market capitalization stands at $2.005 trillion. Bitcoin (BTC), on the other hand, is trading at $58,000 after several failed attempts to consolidate above the key $60,000 level.

Featured image from DALL-E, chart from TradingView.com