Regulation
Nigeria Seizes $37M Crypto In Crackdown Amid Binance Lawsuit
In a dramatic escalation of its ongoing crypto crackdown, Nigeria’s government has moved to freeze $37 million worth of virtual assets held in digital wallets. This action marks the tightening of crypto regulation efforts amid the Binance lawsuit. The latest move is reportedly aimed at disrupting financial support for a recent wave of nationwide protests.
Nigeria Crypto Crackdown Intensifies
The central element of this enforcement in Nigeria was outlined in a briefing given by National Security Adviser Nuhu Ribadu to a government council led by President Bola Tinubu. Ribadu announced that the Nigerian authorities had successfully secured a court order to freeze a $37 million out of the $50 million crypto assets held in digital wallets.
These assets were allegedly used to fund protests against the rising cost of living in the country. The aforementioned protests, began earlier this month, have been a focal point of public dissent against the economic policies of the current administration. They have now raised questions on the country’s crypto regulation measures.
A detailed report from Premium Times revealed that the court order, issued in Abuja, pertains to four crypto wallets reportedly containing about 37 million USDT, a stablecoin pegged to the U.S. dollar. The Economic and Financial Crimes Commission (EFCC), Nigeria’s anti-corruption and financial crimes unit, has claimed that these wallets are connected to individuals under investigation for money laundering and terrorism financing.
However, the exact nature of the investigation and its linkage to the protests remains unclear. The timing of the freeze order, granted on August 9, coincides closely with the peak of the protests. However, the official documentation did not explicitly connect the wallets to the demonstration activities.
The EFCC has yet to provide a comprehensive explanation for the connection between the crypto wallets and the protest funding. Furthermore, Nigeria’s stance on crypto regulation has been increasingly stringent this year.
Latest Details On The Binance Lawsuit
Since February, the Central Bank of Nigeria (CBN) has raised alarms over crypto platforms like Binance. It accusing them of facilitating illicit financial flows and contributing to the destabilization of the naira, Nigeria’s national currency. This regulatory push has led to broader measures including the restriction of access to crypto trading platforms and the arrest of several high-profile figures associated with the industry.
Among those affected by the regulatory crackdown is Tigran Gambaryan, a U.S. citizen and executive at the Binance crypto exchange. Gambaryan has been in detention at Kuje Prison since February 26 following his arrest during a meeting with Nigerian officials in Abuja. Moreover, his family has recently voiced urgent concerns over the Binance executive’s deteriorating health and is calling for his immediate release.
Binance and its executives, including Gambaryan and Nadeem Anjarwalla, the company’s regional manager for Africa, face serious allegations. They are charged with tax evasion for allegedly failing to register with Nigeria’s Federal Inland Revenue Service (FIRS) for tax obligations.
In addition to these charges, there are claims of over $35 million in alleged money laundering activities. Furthermore, Gambaryan’s case has faced delays, with the Nigerian court adjourned for its summer break and the next hearing scheduled for October 11.
Kritika Mehta
Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.
Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin
In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.
Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.
Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.
“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.
In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.
Industry Players Are Bracing For New Stablecoin Regulations
Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.
For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.
Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.
New FDIC Guidelines on Crypto-Related Activities
The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.
Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.
This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.
“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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