Nigerian law enforcement agencies have traced cryptocurrencies worth $50 Million. These digital assets could possibly fuel nationwide protests. As per the local media, the Nigerian authorities have already managed to extract cryptocurrencies worth $38 Million from the crypto wallet freeze. This amount was sent from a foreign source to instigate protests across the country against rising inflation.
Nigeria has also cracked down on the world’s largest crypto exchange, Binance. The government has cited its contribution to weakening the Nigerian currency as the reason behind this crack-down.
Court Orders to Freeze $38 Million in Crypto Wallets
The Nigerian court issued an order to freeze around $38 Million from the total of $50 Million traced by intelligence agencies. The most populous African nation is already grappling with the rising cost of living, and authorities said riots in such times would further weaken the country.
Authorities freezed four crypto wallets following the orders of Federal High Court in Abuja to impose a crackdown on its owners and organizers of the #EndBadGovernance protests.
The Economic and Financial Crimes Commission (EFCC) of Nigeria placed the request to freeze the accounts of these elements on August 13th.
In a media address, Nigerian President Bola Tinubu and NSA Nuhu Ribadu said that they have been able to block four crypto wallets containing $38 Million. He also stated that they have successfully traced wallets containing cryptocurrencies worth around $50 Million.
The first of the four wallets contained $37 Million, and the remaining three wallets received $1 Million.
In a media address, Nigerian President Bola Tinubu and NSA Nuhu Ribadu said that they have been able to block four crypto wallets containing $38 Million. He also stated that they have successfully traced wallets containing cryptocurrencies worth around $50 Million.
The first of the four wallets contained $37 Million, and the remaining 1 Million was divided into the remaining three wallets.
Crisis in Nigeria
The rising cost of living has caused anger among most Nigerians. Their currency, Niara, has been constantly devaluing compared to the USD for over one year.
The nation is suffering from an all-time high of 33.2% inflation rate. This is the worst in the last 28 years in Nigeria. The problem is further increasing due to use of cryptocurrencies instead of the Nigerian currency, Naira.
