In a significant legal move, government in Nigeria has frozen more than $37 million worth of cryptocurrency held in wallets allegedly tied to the #EndBadGovernance protest organizers. The Federal High Court in Abuja, Nigeria’s capital, issued the freeze following an application by the Economic and Financial Crimes Commission (EFCC), citing suspicions of money laundering and terrorism financing.
The court order, signed by Judge Emeka Nwite, targets four cryptocurrency wallets, with the largest holding over USDT 37 million. The EFCC filed an ex parte application on August 8, which was promptly heard and granted by the court the following day. The order allows for the freezing of the assets pending the conclusion of investigations into the financial activities linked to the wallets.
While the EFCC did not disclose the identities of the wallet owners in its application, insiders have indicated that the wallets are connected to individuals involved in organizing the ongoing protests against the Nigerian government. These protests, which have gained momentum under the banner #EndBadGovernance, echo the widespread dissent seen during the #EndSARS demonstrations of 2020.
The EFCC, in its application, described the assets as proceeds of criminal activity, including money laundering and terrorism financing. Lawyer O.S. Ujam, representing the EFCC, urged the court to freeze the wallets until the completion of the investigation. The court proceedings were held ex parte, meaning the wallet owners or their representatives were not present to challenge the application.
“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,” the judge ruled after hearing the EFCC’s argument.
The largest wallet, holding USDT 37,061,867, was the primary target of the freeze. Three other wallets, containing smaller amounts — USDT 967, USDT 90, and USDT 443,512 — were also frozen. The precise details of the investigations are yet to be fully disclosed, but the Nigerian government has made it clear that it is taking a firm stance against the alleged illegal financing of protest activities.
The protests, which escalated in early August, have drawn thousands of Nigerians to the streets. Demonstrators, driven by mounting frustrations over economic hardships, are demanding the reversal of recent government policies, including a controversial fuel price hike, higher electricity tariffs, and increased tertiary education fees. Calls for greater government transparency, a reduction in public officials’ salaries and allowances, and the creation of emergency funds for small and medium-sized enterprises (SMEs) have also gained traction.
Critics argue that the government’s actions, including the court-ordered freezing of assets, are part of a broader strategy to stifle dissent and undermine legitimate protest movements. On the other hand, officials maintain that the measures are necessary to prevent illicit financial activities from destabilizing the country.
The freezing of these cryptocurrency wallets allegedly belonging to protest organizers in Nigeria raises important questions about the balance between state security and civil liberties in a country ranked 118th out of 165 countries in the 2023 Human Freedom Index.