Nigeria Seizes $37M Crypto In Crackdown Amid Binance Lawsuit

As a seasoned researcher with extensive experience in global financial regulation, I find myself both intrigued and alarmed by the latest developments in Nigeria’s crypto landscape. The aggressive crypto crackdown, as evident in the freezing of $37 million worth of virtual assets, is a stark reminder of the complex interplay between digital finance, national security, and public dissent.


In an intensified effort to control cryptocurrencies, Nigeria’s government has decided to freeze approximately $37 million in digital assets stored in virtual wallets. This action is part of their ongoing efforts to regulate cryptocurrencies, as they are currently involved in a lawsuit with Binance. The latest step seems to be aimed at hindering financial aid for the recent surge of nationwide demonstrations.

Nigeria Crypto Crackdown Intensifies

The key point of this enforcement action in Nigeria was explained during a meeting chaired by President Bola Tinubu and attended by other government officials, where National Security Adviser Nuhu Ribadu detailed that Nigerian authorities had obtained a court order to seize $37 million from the total $50 million in cryptocurrency assets stored in digital wallets.

It’s said that these assets were used to finance demonstrations opposing the increasing cost of living in the nation. These protests, which started earlier this month, have become a significant focus of public discontent towards the economic policies of the current government. Now, they’ve sparked debates about the country’s regulations on cryptocurrency.

A thorough examination by Premium Times uncovered a court order originating in Abuja related to four digital wallets, said to hold approximately 37 million US Dollars’ worth of USDT, a type of cryptocurrency tied to the U.S. dollar. The Economic and Financial Crimes Commission (EFCC), Nigeria’s agency focusing on anti-corruption and financial offenses, asserts that these wallets are linked to suspects being scrutinized for money laundering activities and terrorism funding.

Despite the fact that it’s not fully understood how the investigation is related to the protests, it appears that the timing of the freeze order, issued on August 9, aligns significantly with the height of the protests. However, the official records do not explicitly show a direct connection between the wallets and the demonstration activities.

1) The Economic and Financial Crimes Commission (EFCC) hasn’t given a thorough account of how the cryptocurrency wallets are related to the financing of protests. Moreover, the Nigerian government has taken a more rigid approach towards cryptocurrency regulations in 2021.

Latest Details On The Binance Lawsuit

Over the past few months, the Central Bank of Nigeria (CBN) has voiced concerns about cryptocurrency platforms such as Binance, claiming they aid illegal financial transactions and undermine the stability of the naira, Nigeria’s currency. In response to these allegations, stricter regulations have been implemented, including the prohibition of access to crypto trading sites and the detention of several key industry figures.

Tigran Gambaryan, an American citizen who holds a high position at Binance crypto exchange, is one of those affected by the regulatory clampdown. Since his arrest during a meeting with Nigerian authorities in Abuja on February 26, he has been detained at Kuje Prison. Lately, Gambaryan’s family has expressed grave worries about his declining health and is demanding his swift release.

Binance and several of its high-ranking officials, including Gambaryan and Nadeem Anjarwalla, who serves as the company’s regional manager for Africa, are under scrutiny due to substantial accusations. These charges involve allegedly neglecting to register with Nigeria’s Federal Inland Revenue Service (FIRS) for tax purposes, which could potentially lead to tax evasion.

Beyond the recent accusations, there’s talk of more than $35 million worth of dubious transactions being linked to money laundering activities. As for Gambaryan’s case, it’s been postponed – the Nigerian court is taking a summer break, and we’re scheduled to resume proceedings on October 11.

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2024-08-16 18:59