Nigeria Takes Action: $37 Million USDT Frozen Amid Allegations
In a major move against alleged financial misconduct, the Nigerian government has frozen four cryptocurrency wallets holding over $37 million in Tether’s USDT stablecoin. This action follows a request from the Economic and Financial Crimes Commission (EFCC), which claims that the funds are linked to money laundering and terrorism financing.
The Abuja Federal High Court Judge Emeka Nwite approved the freeze request on August 9, 2024. The EFCC’s application specified four wallet addresses, including one with a massive $37 million in USDT and others with smaller amounts. The wallets in question are:
- TGVCWYLdeCyjmSpojd4n7hqfJp2ucwuGAx — 960 USDT
- bclqd6803rg24sgh4pjaprvh47apvgmleps9zagdt — 90 USDT
- TB37WWozkkenGVYWD7Do2N5WT2CedqDktJ — 37,061,869.3 USDT
- TUpHuDkiCCmwaTZBHZvQdwWzGNm5t8J2b9 — 443,512.37 USDT
In his ruling, Judge Nwite stated:
“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, pending the conclusion of the investigation.”
Who Are the Owners? Speculations and Investigations
While the court has not disclosed the identities of the wallet owners, there is speculation that the funds might be connected to recent protests in Nigeria. The #EndBadGovernance protests, which took place from August 1 to 10, 2024, were driven by widespread dissatisfaction with Nigeria’s economic and governance issues.
Wallets and Exchanges: What the Blockchain Data Reveals
An analysis of the wallet addresses by CryptoSlate, using blockchain data from Arkham Intelligence, reveals some intriguing details. The wallet TGVCWYLdeCyjmSpojd4n7hqfJp2ucwuGAx had only $16 as of August 3, 2024, and previously had a balance of $3,000 in August 2023. This wallet has had significant interactions with major centralized exchanges like Binance, KuCoin, and OKX.
Additionally, Arkham’s data suggests that the wallets TB37WWozkkenGVYWD7Do2N5WT2CedqDktJ and TUpHuDkiCCmwaTZBHZvQdwWzGNm5t8J2b9 are associated with the hot wallets of MEXC and KuCoin exchanges. As of now, these exchanges have not responded to CryptoSlate’s request for comment regarding the connections.
Interestingly, Arkham’s analysis did not provide data on the wallet bclqd6803rg24sgh4pjaprvh47apvgmleps9zagdt, suggesting that it may not exist or may have been inactive.
What’s Next?
The situation is evolving as Nigerian authorities continue their investigation into these frozen assets. The involvement of major crypto exchanges like KuCoin and MEXC adds a complex layer to the case, and further developments are expected as the investigation unfolds.
Stay tuned for updates as we continue to monitor this high-stakes case and its potential implications for the broader cryptocurrency landscape.
