As tensions between the Nigerian government and people escalated, large-scale protests broke out in Nigeria in August. In response, the authorities claimed to have frozen $52 million in cryptocurrency related to the protest movement. However, on-chain data showed that some crypto wallets Still active.

(Fight for cryptocurrency property rights! Nigerian people file lawsuit against government)

#EndBadGovernanceInNigeria protests spark clashes

Local media reported that since August 1, people in some parts of Nigeria have been protesting against life difficulties such as "food shortages, severe inflation, bureaucratic corruption and the cancellation of subsidy policies." The number of participants has reached tens of thousands, which has triggered a wave of protests. Robbery and destruction of people's property occurred.

The police chose to use tear gas and water cannon to disperse the protesters and strictly enforced a curfew. Thirteen people are said to have been killed in protests in the past two weeks, and more than 300 people have been arrested.

Nigerian authorities: US$50 million in cryptocurrency protest funds have been frozen

Techpoint reported that while the#EndBadGovernanceprotest movement continued to spread, the Nigerian authorities claimed to have frozen a large amount of funds, which was widely believed to be related to the protests.

The country’s national security adviser Nuhu Ribadu said at a state council meeting on Tuesday that the government has frozen illicit funds totaling 83 billion naira (about 52 million U.S. dollars), including 78 billion naira (about 50 million U.S. dollars) in cryptocurrency, of which 59 billion naira (approximately $37 million) came from 4 wallets.

In response, Justice Emeka Nwite of the Federal High Court in Abuja approved the freezing request of the Economic and Financial Crimes Commission (EFCC) on August 9:

The court ordered the freezing of wallet addresses or accounts provided by the EFCC that belong to individuals currently under investigation for money laundering and terrorism financing offences.

Data on the chain explodes: money is still being transferred

However, upon closer inspection of these wallet addresses, it appears that the balances of these wallets do not match those stated by the authorities, and even some wallets are still active.

Arkham Intelligence data shows that a wallet starting with TGVC was reported to have about $960 in funds, but actually only had $16; another wallet was reported to have $443,000, but actually only had $233,000.

In addition, wallets starting with TR7N are still active and are frequently trading with KuCoin and MEXC exchanges. Obviously, this contradicts the government's statement and calls into question the authenticity and transparency of the government's actions.

However, if what the Nigerian authorities say is true, then the exchanges related to these wallets may have handed over the identity information of the account holders to the authorities in accordance with the law.

Regulatory challenges for cryptocurrency in Nigeria

Previously, the Nigerian authorities had accused the exchange Binance of manipulating exchange rates, owing taxes, and participating in money laundering. They demanded tens of billions of dollars in compensation and detained two of its executives, who have not yet been released.

(The Central Bank of Nigeria accuses Binance of illegally operating banking services such as fiat currency exchange and P2P market)

In the face of Nigeria's strict regulatory attitude, the International Monetary Fund (IMF) has recommended that the country implement the anti-money laundering mechanism of the crypto industry and further open up development in the face of the current economic risks it faces, which will help support local economic growth. .

During the protests, the country’s Blockchain Technology Association (SiBAN) also called on the authorities to include the specific demands of crypto companies and develop a supportive crypto regulatory framework in an effort to promote regulatory reform and promote economic development.

This article: Protests spread in Nigeria, and crypto funds are frozen by the government? On-chain data: Wallet is still active first appeared in Chain News ABMedia.