Rock

Security

Despite the Nigerian government’s claim of blocking significant funds tied to sponsors of the #EndBadGovernance protests in the country, some cryptocurrency wallets linked to the movement remain active.
Nuhu Ribadu, the National Security Adviser (NSA), announced during a Council of State meeting convened by President Bola Tinubu at the Aso Rock Villa in Abuja on Aug. 13 that the government had blocked 83 billion Nigerian naira ($52 million) in cryptocurrencies and fiat traced to the protest sponsors.&nbsp;
<h3 id="government-s-freeze-claim">Government’s freeze claim&nbsp;</h3>
This includes 78 billion naira ($50 million) in cryptocurrency, 59 billion naira ($38 million) supposedly frozen in four wallets, and 4 billion naira ($2,540) allegedly contributed by political actors from Abuja, Kano, Kaduna and Katsina.
However, a local media scan of the wallet addresses&nbsp;<a href="https://techpoint.africa/2024/08/14/crypto-wallets-frozen-by-government-are-still-active/" text="null" title="null">indicates</a>&nbsp;discrepancies in the government’s claim, with some of the wallets continuing to perform transactions or showing incorrect balances.&nbsp;
For instance, one wallet reported a balance of 1.5 million naira ($967) and showed only 270,796 naira ($172) upon inspection, while another wallet, supposedly holding 698 million naira ($443,512), had 367 million naira ($233,574), according to blockchain data. 
The wallets, traced to the KuCoin and MEXC exchanges, have been actively sending and receiving funds, contradicting the government’s claims.
One notable transaction involved transferring 78 million naira ($50,000) to an unknown wallet and quickly moving the funds to another address. While the identities of the wallet owners remain undisclosed, it is possible that the exchanges holding these wallets have shared information with authorities.
<h3 id="regulatory-challenges-exposed-by-crypto-transactions">Regulatory challenges exposed by crypto transactions</h3>
According to local media, a crypto forensic expert explained that the government could write to an exchange to support an investigation if crime proceeds are in a wallet. 
However, the expert added that exchanges are not obligated to comply with government requests unless there is a substantial legal basis, and they often resist such demands if they seem unfounded.
Related: <a href="https://cointelegraph.com/news/nigeria-blockchain-adoption-insights" text="null" title="null">Why Nigeria’s blockchain success hinges on private sector expertise</a>
The Economic and Financial Crimes Commission (EFCC), which requested the freezing of the wallets, is investigating the funds for alleged money laundering and terrorism financing.&nbsp;
This adds a layer of complexity to the situation, as the ongoing transactions and balance discrepancies cast doubt on the effectiveness and transparency of the government’s actions.
The ongoing activity in these wallets highlights the challenges governments face in regulating and monitoring cryptocurrency transactions. Unlike traditional financial systems, blockchain technology offers a degree of anonymity and decentralization, making it difficult for authorities to enforce freezes and track funds effectively.
During the #EndBadGovernanceInNigeria protests, voices from Nigeria’s cryptocurrency community <a href="https://cointelegraph.com/news/nigerian-crypto-advocates-demand-reform" text="null" title="null">called for industry-specific demands</a> to be included. 
The movement sought to address myriad governance issues and was seen as an opportunity to push for regulatory reforms that could significantly benefit the industry and the broader economy.
Magazine: <a href="https://cointelegraph.com/magazine/meme-coins-betrayal-crypto-ideals-or-true-purpose/" text="null" title="null">Memecoins: Betrayal of crypto’s ideals… or its true purpose?</a>

 <hard_break></hard_break>

Nigerian crypto wallets tied to protests evade government freeze efforts

Table of Contents

Cointelegraph

Other articles published on Aug 15, 2024

OKX Exchange Lists Three New Trading Pairs

WazirX Severs Ties With Liminal Following $230M Security Breach

Crypto Market Crashes: Bitcoin Falls 16% and Ethereum Plunges 22% Amid $1B Liquidations

Toncoin Surges 12% in One Day

DRW Holdings Pushes Crypto ETF Investments to $200M, Highlights Ethereum’s Rise

Finance: Luxembourg attracts French Savers Frightened by the Return of the Wealth Tax (ISF)

Join our free newsletter for daily crypto updates!