Nigeria freezes $38M in crypto linked to anti-government protests

Nigerian authorities have taken significant action by freezing nearly $38 million in cryptocurrency, which they allege was used to support protests against the rising cost of living in the country. 

The Federal High Court in Abuja issued the order to freeze four wallets believed to be connected to the organizers of the #EndBadGovernance protests. 

This move is part of a broader crackdown on cryptocurrency in Nigeria, with the government claiming that the use of digital currencies has contributed to the weakening of the national currency, the naira.

National Security Adviser Nuhu Ribadu reported that the government traced $50 million in donations to crypto wallets intended to support these protests. 

Of this amount, $38 million has been successfully frozen. 

The Economic and Financial Crimes Commission (EFCC) requested the court order, citing concerns over the use of cryptocurrency to fund anti-government activities. 

However, some reports suggest that the crypto wallets in question currently show a zero balance and have never been used.

Nigerians have been increasingly protesting against the rising cost of living, a situation worsened by the naira's sharp decline against the dollar. 

Inflation in Nigeria has surged to a 28-year high of 33.2%, with authorities partly blaming cryptocurrency trading for the currency's devaluation. 

Earlier this year, Olayemi Cardoso, the Governor of the Bank of Nigeria, accused the crypto exchange Binance of facilitating the untraceable transfer of $26 billion out of the country, which he claimed negatively impacted tax revenues. 

This accusation led to a series of events, including the detention of Tigran Gambaryan, a U.S. citizen and Binance official, who had been in Nigeria for discussions regarding the dispute.

This crackdown on cryptocurrency reflects the Nigerian government's broader efforts to stabilize the naira and control the economic impact of digital currencies.