Nigeria protests continue, crypto funds frozen by government? On-chain data: wallets still active

As tensions escalate between the Nigerian government and its people, massive protests erupted in August. Authorities claimed to have frozen $52 million in cryptocurrency related to the protests, but on-chain data shows that some crypto wallets are still active.

Fighting for Cryptocurrency Property Rights! Nigerian People Sue the Government

#EndBadGovernanceInNigeria Protests Lead to Clashes

Local media reported that since August 1st, residents in certain regions of Nigeria have been protesting against "food shortages, severe inflation, bureaucratic corruption, and the cancellation of subsidy policies," with participation reaching tens of thousands. These protests have escalated to incidents of looting and damage to public property.

Authorities responded by using tear gas and water cannons to disperse the crowds and imposing strict curfews. Reportedly, 13 individuals have lost their lives during the protests in the past two weeks, with over 300 people being arrested.

Nigerian Authorities: Freeze $50 Million in Cryptocurrency Protest Funds

Techpoint reported that as the #EndBadGovernance protests continue to unfold, Nigerian authorities claim to have frozen significant funds believed to be linked to the protests.

The National Security Adviser of the country, Nuhu Ribadu, stated during a state council meeting on Tuesday that the government has frozen a total of 83 billion naira, approximately $52 million, of illicit funds, including 78 billion naira, about $50 million, in cryptocurrency, with 59 billion naira, approximately $37 million, coming from 4 wallets.

On August 9th, Federal High Court Judge Emeka Nwite approved the freeze request by the Economic and Financial Crimes Commission (EFCC):

The court ordered the freezing of the wallet addresses or accounts provided by the EFCC, owned by individuals under investigation for money laundering and terrorism financing.

Online Data Reveals Money Still Being Transferred

However, upon closer examination of these wallet addresses, discrepancies in the fund balances were found, with some wallets still active despite the authorities' claims.

Arkham Intelligence data shows that a wallet starting with TGVC was reported to hold around $960, but actually only contains $16; another wallet purportedly has $443,000 but in reality holds only $233,000.

In addition, the wallet starting with TR7N is still active, frequently engaging in transactions with KuCoin and MEXC exchanges. This contradiction with the government's statements raises doubts about the authenticity and transparency of the government's actions.

If the Nigerian authorities' claims hold true, exchanges associated with these wallets may have already provided the authorities with the identity information of the account holders as required by law.

Regulatory Challenges of Cryptocurrency in Nigeria

Previously, Nigerian authorities accused the exchange Binance of manipulating exchange rates, owing taxes, and involvement in money laundering, leading to a claim of billions of dollars and the detention of two executives, who remain in custody.

Nigerian Central Bank Accuses Binance: Operating Fiat Exchange and P2P Market in Violation of Law

Facing Nigeria's stringent regulatory stance, the International Monetary Fund (IMF) has advised the country to implement anti-money laundering measures in the crypto industry amid its current economic risks and to further open up development, which could support local economic growth.

During the protests, the Nigeria Blockchain Association SiBAN also urged authorities to address the specific demands of crypto businesses and establish a supportive regulatory framework for crypto, aiming to drive regulatory reform and promote economic development.