Nigerian authorities have intensified their efforts to freeze cryptocurrency accounts worth millions of dollars, reportedly targeting funds linked to a recent protest movement. The move is part of an ongoing crackdown on cryptocurrency use, which began over a year ago when the Central Bank of Nigeria raised concerns that crypto platforms facilitated anonymous money flows.
During a briefing to a government council chaired by President Bola Tinubu on Tuesday, National Security Adviser Nuhu Ribadu revealed that his office had initiated actions to freeze $38 million held in digital wallets. According to local media, these wallets allegedly received donations supporting nationwide cost-of-living protests held earlier in the month.
An earlier report had claimed that court documents from Nigeria’s capital, Abuja, detailed an order granting the Economic and Financial Crimes Commission (EFCC) the authority to freeze four cryptocurrency wallets holding roughly 37 million USDT, a stablecoin tied to the value of the US dollar. The EFCC alleges that the wallets belong to individuals under investigation for money laundering and terrorism financing.
Although the court order, dated August 9, predates the protests, it does not explicitly link the frozen funds to the demonstrations. The EFCC has not yet issued any clarification.
Nigeria’s crackdown on cryptocurrency has ramped up in recent months, with authorities blocking access to crypto trading websites and arresting employees of Binance, a major global crypto exchange. Officials claim that cryptocurrency trading contributed to the sharp depreciation of the naira earlier this year.
However, doubts have been raised about the content of the targeted wallets. Reports on Wednesday suggested that two of the wallets contained less cryptocurrency than the EFCC had reported, while a third wallet allegedly did not exist. KuCoin, a crypto exchange identified in one report as owning one of the wallets, has not commented on the claims.