Anika Begay
A Nigerian court has ordered the freezing of nearly $40 million in cryptocurrency believed to have been used to support nationwide anti-government protests. The ruling, amid rising tensions over rising living costs in Africa’s most populous nation, has raised concerns about authorities’ response to the civil unrest.
Anti-corruption agency freezes $38 million
According to local media relationsThe Economic and Financial Crimes Commission (EFCC), Nigeria’s top anti-corruption agency, said the frozen assets represent the “proceeds of money laundering and terrorist financing.” However, no details were released about the specific individuals or groups whose wallets were targeted.
Sources familiar with the matter told reporters that the government believes the funds can be traced back to alleged organizers of the #EndBadGovernance protests, a series of demonstrations that swept Nigeria in early August.
From August 1 to 10, protests saw Nigerians take to the streets to express their frustrations over the worsening situation in the country. economic crisisincluding skyrocketing inflation, unemployment and widespread poverty.
Security forces have been accused of using excessive force, with more than 20 protesters reportedly killed during the demonstrations. Authorities have since taken a hard line, arresting alleged protest organizers and those believed to have committed crimes under the guise of the rallies.
Cryptocurrency Crackdown in Nigeria
This is not the first time that the Nigerian government has taken measures to limit financial resources anti-government activistsIn 2020, during the widespread #EndSARS protests against police brutality, authorities successfully obtained a court order to freeze the accounts of key protest organizers, accusing them of 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 peaceful assembly.
The last one repression on cryptocurrency-based support for protests highlights the Nigerian government’s growing discomfort with using digital assets to evade traditional financial controls.
Experts warn that these authoritarian tactics could further undermine public trust and push more Nigerians to seek alternative, decentralized ways to organize and raise funds.
This increased scrutiny of the industry has reached the world’s largest exchange by trading volume, Binance, where a top executive, Tigran Gambaryanis in critical condition in a Nigerian prison. His health has reportedly been in a downward spiral since he was arrested 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 cryptocurrency market cap 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
