- A Nigerian court has frozen nearly $38 million in cryptocurrency allegedly meant to support protests against the rising cost of living
- The Federal High Court in Abuja has taken this action following the Economic and Financial Crimes Commission’s request
- Uncertainty has persisted regarding whether the targeted cryptocurrency wallets have been active or not
A Nigerian court last week issued an order to freeze nearly $38 million in cryptocurrencies which were allegedly intended to support protests against the escalating cost of living in the country. According to local media, The Federal High Court in Abuja took the action at the request of the Economic and Financial Crimes Commission (EFCC), according to a report in the Premium Times, which came in the wake of a meeting of the Council of State which revealed that some $50 million in digital assets had been raised for anti-government protestors. Despite the court’s action, it remains unclear whether the wallets in question were active or not.
Nigerian Protests Increase
The Premium Times reported that the court’s decision targeted four cryptocurrency wallets, which are allegedly connected to the organizers of the #EndBadGovernance protests. These protests have been gaining traction in response to the growing economic hardships faced by many Nigerians.
The protests have hit crypto holders in other ways, with a squeeze being put on crypto exchanges to prevent citizens from swapping their depreciating nairas for digital assets.
During the recent meeting of the Council of State, National Security Adviser Nuhu Ribadu revealed that the government had traced $50 million in donations to the monitored crypto wallets. Of this amount, $38 million was reportedly found in the four wallets that have now been frozen. This information was reported by Punch, which cited Ribadu’s briefing to the council, convened by President Bola Tinubu.
Crypto Takes the Brunt
Despite the court’s action, it remains unclear whether the wallets in question were active or not; the crypto address associated with the wallets showed a zero balance and had never been used, raising questions about the timing and effectiveness of the freeze.
The protests in Nigeria are largely driven by the nation’s economic challenges, particularly the declining value of the naira, which has been weakening against the US dollar for over a year. This depreciation has contributed to soaring inflation, which recently hit a 28-year high of 33.2%, with the government anxious to stop citizens swapping their fiat currency for cryptocurrencies.
