The Federal High Court of Nigeria has frozen around $38 million out of the total $50 million aimed at financially backing protests over rising living costs in the country.
Reasons for the Ruling
The injunction was issued at the request of the Economic and Financial Crimes Commission (EFCC). National Security Adviser Nuhu Ribadu asserted that the government identified the origin of $50 million in crypto donations to the protesters and effectively prevented access to four of those wallets, which held a total of $38 million.
Role of Cryptocurrency in Protests
The crypto address displayed a balance of zero and had never been utilized. Nigerians have been demonstrating against the escalating cost of living since the value of the naira has been steadily decreasing in relation to the dollar for more than a year. This has resulted in inflation reaching a 28-year peak of 33.2%.
Impact on Nigeria's Economy
The naira's challenges have been attributed to crypto trading. In a statement earlier this year, Governor Olayemi Cardoso of the Bank of Nigeria alleged that Binance facilitated the unauthorized outflow of $26 billion from the country in the previous year, resulting in a significant loss of tax revenues.
The court's decision has highlighted the role of cryptocurrencies in Nigeria's economic issues and has increased scrutiny on financial movements within the country.
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