Regulation

Nigeria Seizes $37M Crypto In Crackdown Amid Binance Lawsuit

Published

4 months ago

August 16, 2024

In a dramatic escalation of its ongoing crypto crackdown, Nigeria’s government has moved to freeze $37 million worth of virtual assets held in digital wallets. This action marks the tightening of crypto regulation efforts amid the Binance lawsuit. The latest move is reportedly aimed at disrupting financial support for a recent wave of nationwide protests.

Nigeria Crypto Crackdown Intensifies

The central element of this enforcement in Nigeria was outlined in a briefing given by National Security Adviser Nuhu Ribadu to a government council led by President Bola Tinubu. Ribadu announced that the Nigerian authorities had successfully secured a court order to freeze a $37 million out of the $50 million crypto assets held in digital wallets.

These assets were allegedly used to fund protests against the rising cost of living in the country. The aforementioned protests, began earlier this month, have been a focal point of public dissent against the economic policies of the current administration. They have now raised questions on the country’s crypto regulation measures.

A detailed report from Premium Times revealed that the court order, issued in Abuja, pertains to four crypto wallets reportedly containing about 37 million USDT, a stablecoin pegged to the U.S. dollar. The Economic and Financial Crimes Commission (EFCC), Nigeria’s anti-corruption and financial crimes unit, has claimed that these wallets are connected to individuals under investigation for money laundering and terrorism financing.

However, the exact nature of the investigation and its linkage to the protests remains unclear. The timing of the freeze order, granted on August 9, coincides closely with the peak of the protests. However, the official documentation did not explicitly connect the wallets to the demonstration activities.

The EFCC has yet to provide a comprehensive explanation for the connection between the crypto wallets and the protest funding. Furthermore, Nigeria’s stance on crypto regulation has been increasingly stringent this year.

Latest Details On The Binance Lawsuit

Since February, the Central Bank of Nigeria (CBN) has raised alarms over crypto platforms like Binance. It accusing them of facilitating illicit financial flows and contributing to the destabilization of the naira, Nigeria’s national currency. This regulatory push has led to broader measures including the restriction of access to crypto trading platforms and the arrest of several high-profile figures associated with the industry.

Among those affected by the regulatory crackdown is Tigran Gambaryan, a U.S. citizen and executive at the Binance crypto exchange. Gambaryan has been in detention at Kuje Prison since February 26 following his arrest during a meeting with Nigerian officials in Abuja. Moreover, his family has recently voiced urgent concerns over the Binance executive’s deteriorating health and is calling for his immediate release.

Binance and its executives, including Gambaryan and Nadeem Anjarwalla, the company’s regional manager for Africa, face serious allegations. They are charged with tax evasion for allegedly failing to register with Nigeria’s Federal Inland Revenue Service (FIRS) for tax obligations.

In addition to these charges, there are claims of over $35 million in alleged money laundering activities. Furthermore, Gambaryan’s case has faced delays, with the Nigerian court adjourned for its summer break and the next hearing scheduled for October 11.