Bitrabo Editorial
A court in Nigeria has taken action to freeze around $40 million worth of cryptocurrency funds believed to have been used to back nationwide protests against the government. The decision, made against a backdrop of rising living costs in Africa’s most populous country, has raised concerns about how the authorities are handling civil unrest.
Agency Stops $38 Million
The Economic and Financial Crimes Commission (EFCC), Nigeria’s foremost anti-corruption agency, has reportedly frozen the assets, alleging that they are linked to “money laundering and terrorism financing.” However, specific details about the individuals or groups with affected wallets have not been made public.
Insiders close to the matter indicate that the government suspects the funds are tied to organizers of the #EndBadGovernance protests – a series of nationwide demonstrations that took place in early August.
Between August 1-10, the protests witnessed Nigerians hitting the streets to express their discontent with the country’s deteriorating economic situation, marked by soaring inflation, high unemployment, and widespread poverty.
Security forces faced accusations of using excessive force, with reports of over 20 protesters losing their lives during the protests. Since then, authorities have adopted a tough stance, detaining alleged protest organizers and those suspected of committing offenses under the guise of the protests.
Nigeria’s Actions on Crypto
This move isn’t the first time the Nigerian government has acted to curb the financial resources of anti-government activists. Last year, during the widespread #EndSARS protests against police brutality, authorities secured a court order to freeze the accounts of key protest leaders, citing links to terrorist funding.
While the government asserts that the current freeze on cryptocurrency is part of legitimate inquiries into money laundering and terrorism, critics have criticized it as an evident bid to suppress dissidence and undermine the public’s right to assemble peacefully.
The recent crackdown on cryptocurrency-based support for the protests underscores the Nigerian government’s growing discomfort with using digital assets to bypass conventional financial regulations.
Experts caution that such stringent measures could erode public trust further and drive more Nigerians to explore alternative, decentralized methods of coordination and fundraising.
This heightened scrutiny has affected Binance, the world’s largest exchange by trading volume, where a senior executive, Tigran Gambaryan, is in critical condition in a Nigerian jail. His health has reportedly deteriorated since his arrest earlier this year.
Gambaryan is confronting substantial money laundering accusations alongside the exchange. The Nigerian authorities allege that he and another executive, Nadeem Anjarwalla, laundered over $35 million.
During a broader consolidation phase for the leading digital asset after a significant correction of more than 20% in early August, the overall crypto market capitalization now stands at $2.005 trillion. Bitcoin (BTC) is currently valued at $58,000 following multiple unsuccessful efforts to stabilize above the critical $60,000 mark.
Image credits: DALL-E, chart from TradingView.com