Crypto Crackdown: FG Traces $37m to Protest Organizers

FG Seizes $37m in Crypto Linked to Protesters

FG targets protesters' $37m Cryptocurrency stash...

Nigerian government freezes cryptocurrency assets worth over $37 million linked to #EndBadGovernance protest organizers, alleging money laundering and terrorism financing.

The Nigerian government has taken action against individuals suspected of organizing the #EndBadGovernance protests, freezing cryptocurrency assets valued at over $37 million. These digital funds were traced to wallets allegedly owned by key protest organizers.

The Federal High Court in Abuja, presided over by Judge Emeka Nwite, issued an order on July 9 to freeze the cryptocurrency assets. This decision was made in response to an ex parte application submitted by the Economic and Financial Crimes Commission (EFCC) on August 8, which was heard by the court the following day. The EFCC alleged that the assets, valued at over $37 million, were derived from money laundering and terrorism financing activities. The application was unopposed, and the hearing consisted of a discussion between the judge and the EFCC's counsel, O.S. Ujam.

“That an order of this honourable court is hereby made freezing the wallet addresses/accounts stated in the schedule below, which wallets are owned by individuals currently being investigated for offences of money laundering and terrorism financing, pending the conclusion of the investigation,” Nwite ruled shortly after listening to the EFCC's lawyer.

The largest wallet contained USDT37 million in cryptocurrency, equivalent to $37 million in US dollars. Three other wallets held smaller amounts: USDT967, USDT90, and USDT443,512.37, respectively.

The EFCC's application did not disclose the owners' identities, but sources suggest that the government linked the wallets to suspected organizers of the #EndBadGovernance protests, which took place from August 1 to 10 across Nigeria.

The protests addressed various issues, including the rising cost of living, economic hardship affecting millions of Nigerians, and general governance concerns.

A crackdown by security forces on individuals associated with the protests has been launched, with no apparent distinction being made between peaceful demonstrators and those who allegedly committed crimes during the protests.

According to reports, security forces fatally shot over 20 protesters during the demonstrations. In Abuja, security personnel fired live rounds at peaceful protesters and journalists, who were clearly identified by their vests.

In an effort to apprehend a protest organizer, police questioned a newspaper journalist who had featured the individual on one of their programs.

The federal government has taken a tough stance against those suspected of committing crimes during the protests, seeking to hold them accountable.

An affidavit submitted in support of the application to freeze the cryptocurrency wallets, sworn by EFCC official Jimada Yusuf, alleged that the assets are owned by individuals under investigation for money laundering and terrorism financing offenses.

During the July 9 hearing, EFCC's lawyer, Ujam, requested that the judge order the wallets frozen “until the investigation and prosecution are complete.”

As the hearing was conducted ex-parte, there were no opposing parties present in court to contest the application.

In ex-parte proceedings, the opposing parties are typically not served with notice until the court orders service of the hearing's outcome and subsequent filings.

On July 9, after hearing EFCC's lawyer, Judge Nwite granted the application, ruling: “The applicant's application dated and filed on August 8, 2024, is granted as prayed.”

This is not the first instance of the federal government taking action against protest organizers, as similar measures were taken during the 2020 #EndSARS protests.

At that time, the government blocked accounts linked to the campaigners, citing concerns that the funds might be connected to terrorist activities.

The Central Bank of Nigeria (CBN) froze 20 accounts and sought a court order to extend the freeze for 90 days, arguing that the transaction patterns suggested links to terrorism financing.

In 2020, Justice Ahmed Mohammed of the Federal High Court in Abuja (now a Justice of the Court of Appeal) approved the CBN's application to freeze the accounts of individuals linked to the #EndSARS protests for an extended period exceeding 90 days.

However, the freezing order was later vacated after the legal teams for both the CBN and the 20 defendants agreed to discontinue the case for a three-month period, effectively ending the matter.