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

As a seasoned crypto investor and observer of global political events, I find myself deeply concerned about the recent developments in Nigeria. The freezing of $40 million in crypto funds, allegedly used to support peaceful protests, is a troubling sign of the government’s response to civic unrest.


In a recent decision, a court in Nigeria has directed for the withholding of approximately $40 million worth of cryptocurrency funds, suspected of being employed to finance countrywide demonstrations opposing the administration. This action, taken during escalating tension over increasing living expenses in Africa’s most densely populated nation, has ignited apprehension regarding the government’s handling of public dissent.

Anti-Graft Agency Freezes $38 Million

Based on news reports from local sources, it’s been stated by Nigeria’s primary anti-corruption body, the Economic and Financial Crimes Commission (EFCC), that the seized assets are believed to be derived from illegal activities such as money laundering and financing terrorism. The identities of the particular individuals or entities whose funds were frozen remain undisclosed at this time.

As an analyst, I’ve gathered information suggesting that I believe the authorities are tracking the origin of the funds to individuals they suspect as the masterminds behind the #EndBadGovernance protests – a wave of protests that spread throughout Nigeria in early August.

Between August 1st and August 10th, Nigerians expressed their discontent with the country’s deteriorating economic situation by protesting on the streets. Their grievances centered around soaring inflation, high unemployment rates, and pervasive poverty.

Law enforcement officials face allegations of employing disproportionate force; it’s been documented that more than 20 protesters lost their lives during the protests. Since then, authorities have adopted a firm stance, detaining suspected leaders of the demonstrations and individuals thought to have broken laws while masquerading as rally participants.

Nigeria’s Crypto Clampdown

On previous occasions, the Nigerian government has taken steps to limit the financial assets of individuals opposing the government. For example, during the 2020 #EndSARS protests against police brutality, authorities managed to get a court order to seal the accounts of major protest leaders, claiming they were linked to terrorist financing.

Despite the government’s assertion that the ongoing restriction on cryptocurrencies is linked to legitimate probes concerning money laundering and terrorism financing, skeptics have criticized this action as a clear effort to suppress opposition and weaken the people’s freedom to gather peacefully without interference.

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. 

As a crypto investor, I can’t help but feel a sense of caution when experts warn that aggressive actions may erode public trust even further and drive more Nigerians towards exploring decentralized, peer-to-peer methods for collaboration and fundraising.

As a researcher delving into the intricacies of the digital currency market, I’ve recently come across a troubling development involving the world’s busiest cryptocurrency exchange, Binance. One of its top executives, Tigran Gambaryan, is currently in critical condition while being detained in a Nigerian prison. His health has allegedly deteriorated significantly since his arrest earlier this year.

Gambaryan and fellow executive Nadeem Anjarwalla are under investigation for alleged money laundering activities totaling over $35 million, according to the Nigerian authorities.

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

In a larger period of consolidation for the biggest digital currency following a significant drop of more than 20% in early August, the total crypto market value currently sits at approximately $2 trillion. Meanwhile, Bitcoin (BTC) is being traded at around $58,000, having made several unsuccessful attempts to stabilize above the crucial $60,000 threshold.

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2024-08-17 08:42