A Nigerian court has ordered the freezing of nearly $40 million in crypto funds believed to have been used to support nationwide anti-government protests. The ruling, amid heightened tensions over the rising cost of living in Africa’s most populous country, has raised concerns about the authorities’ response to civil unrest.

Anti-corruption agency freezes $38 million

According to local media reportsThe Economic and Financial Crimes Commission (EFCC), Nigeria’s main anti-corruption agency, claimed that the frozen assets represented “proceeds of money laundering and terrorist financing.” However, no details were released about the specific individuals or groups whose wallets were targeted.

Insiders familiar with the matter told reporters that the government believes the funds can be traced to suspected organizers of the #EndBadGovernance protests, a series of demonstrations that swept across Nigeria in early August.

From August 1 to 10, Nigerians took to the streets to express their frustrations over the deteriorating situation in the country. economic crisisincluding sky-high inflation, unemployment and widespread poverty.

Security forces have been accused of using excessive force, with reports of more than 20 protesters being killed during the demonstrations. Authorities have since adopted a hard line, arresting suspected protest organizers and those believed to have committed crimes under the guise of the demonstrations.

Nigerian Crypto Crackdown

This is not the first time that the Nigerian government has diverted the financial resources of anti-government activistsIn 2020, during the widespread #EndSARS protests against police brutality, authorities managed to obtain a court order to freeze the accounts of key protest organizers, alleging they had links to terrorist financing.

While the government maintains that the current cryptocurrency freeze is part of legitimate investigations into money laundering and terrorism, critics have condemned the move as a blatant attempt to stifle dissent and undermine the public’s right to peacefully assemble.

The last one crackdown over crypto-based support for the protests highlights the Nigerian government’s growing discomfort with using digital assets to circumvent traditional financial controls.

Experts warn that such heavy-handed tactics could further undermine public trust and prompt more Nigerians to seek alternative, decentralized ways to organize and raise funds.

This increased scrutiny of the industry has also had an impact on the world’s largest exchange by trading volume, Binance, where a top executive, Tigran Gambarianis in critical condition in a Nigerian prison. His health has reportedly deteriorated since his arrest earlier this year.

Gambaryan is facing serious money laundering charges along with the stock exchange. The Nigerian government accuses him and another executive, Nadeem Anjarwalla, of laundering more than $35 million.

Amid a broader consolidation phase for the largest digital asset following a deep correction of over 20% in early August, the total crypto market cap stands at $2.005 trillion. Bitcoin (BTC), on the other hand, is trading at $58,000 after several failed attempts to consolidate above the key $60,000 level.

Main image of DALL-E, chart from TradingView.com