A court in Nigeria has frozen nearly $38 million worth of cryptocurrency, with authorities alleging the funds were intended to support protests against rising living costs in Africa’s most populous country.
Court Decision
The Federal High Court in Abuja has ordered the freezing of four wallets allegedly belonging to organisers of the EndBadGovernance protests. The decision was taken following the request of the Economic and Financial Crimes Commission (EFCC), Premium Times reported, citing the court order.
Frozen Cryptocurrency Wallets
National Security Adviser Nuhu Ribadu revealed in a meeting hosted by President Bola Tinubu that the government has traced $50 million in crypto wallets linked to donations for the protests. According to Punch, they have managed to freeze $38 million in four of these wallets.
Reasons for Protests and Cryptocurrency's Impact
The developments come amid widespread protests against the high cost of living in Nigeria. The country’s currency, the naira, has been losing value against the dollar for more than a year, contributing to inflation rates reaching a 28-year high of 33.2%. Authorities have pointed to crypto trading as a factor fueling the naira’s woes. Earlier this year, Central Bank of Nigeria Governor Olayemi Cardoso alleged that Binance, a major crypto exchange, facilitated the untraceable transfer of $26 billion out of the country last year, affecting tax revenues.
The court's decision to freeze significant amounts of cryptocurrency reflects growing government concerns about the negative impact of cryptocurrencies on Nigeria's economy and public sentiment.
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