Kelvin Daminabo
Nigeria’s government intensifies its crackdown on cryptocurrency use by freezing millions of dollars in crypto assets. The National Security Adviser reveals freezing $38 million linked to donations for recent nationwide protests.
An ongoing regulatory crackdown on cryptocurrency in Nigeria started over a year ago, driven by concerns about anonymous money flows on crypto platforms. The Economic and Financial Crimes Commission (EFCC) has been actively involved, recently obtaining a court order to freeze four cryptocurrency wallets holding approximately 37 million USDT.
There are doubts about the wallets targeted in the freeze. Reports indicate discrepancies in the reported cryptocurrency amounts in two wallets, and one wallet is said to be non-existent. KuCoin, a crypto exchange linked to one of the wallets, has not responded to the allegations.
The EFCC claims the frozen wallets are connected to individuals under investigation for money laundering and terrorism financing. While the court order predates recent protests, there is no direct link established between the frozen funds and the demonstrations.
Nigeria has escalated its crackdown on cryptocurrency in recent months, leading to the blocking of access to crypto trading websites and the arrest of Binance employees. Officials cite cryptocurrency trading as a factor in the naira’s depreciation earlier this year, although critics view these actions as potentially suppressing dissenting voices.
The freezing of cryptocurrency accounts raises concerns about potential abuse of power and the impact on legitimate crypto users in Nigeria. The implications of the government’s actions on the country’s crypto market and broader economy remain uncertain as events continue to unfold.