Nigerian Bank Freezes Accounts of Crypto Traders
A Nigerian bank has reportedly blocked the bank accounts of around 500 digital asset traders. These accounts are said to have received funds stolen from Access Bank by hackers earlier this year. The freezing of these accounts has been criticized by a prominent Nigerian crypto enthusiast, who called it “a disgrace to Nigeria’s banking infrastructure.”
Stolen Funds Used to Buy USDT
Social media reports suggest that Access Bank in Nigeria is blocking the accounts of approximately 500 USDT traders. The bank obtained a court order allowing it to put a lien on these accounts, claiming that they received stolen funds. Hackers allegedly stole over $10.4 million from the bank between May and June, and some of the funds were used to purchase tether (USDT) from Binance traders.
500 traders’ bank accounts reportedly blocked after hackers used the N8 billion they stole from a bank to buy USDT from them pic.twitter.com/8hxihynGF0
— Instablog9ja (@instablog9ja) October 22, 2023
Crypto Trader Accounts Frozen: A Disgrace to Nigeria’s Banking Infrastructure
Rume Ophi, the executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), criticized the freezing of crypto traders’ bank accounts, calling it “a disgrace to Nigeria’s banking infrastructure.” Ophi, also known as the Cryptopreacher, believes that this action by Access Bank and others is aimed at undermining the Nigerian crypto industry.
Freezing Bank Accounts Causes More Harm
In response to the account freezes, Ophi stated that thorough investigations should be conducted to apprehend the criminals rather than indiscriminately freezing accounts of innocent individuals involved in cryptocurrency transactions. He believes that freezing accounts is not solving the problem but causing more harm. This echoes previous actions by the Central Bank of Nigeria (CBN), which forced banks to block accounts of individuals involved in crypto-related transactions. However, many digital asset traders continue to rely on the traditional banking system despite these crackdowns, raising questions about banks’ role in enforcing regulatory directives.
Hot Take: Nigerian Bank Freezes Crypto Traders’ Accounts Amidst Stolen Funds Scandal
The freezing of bank accounts belonging to Nigerian crypto traders by Access Bank has sparked controversy and criticism. With allegations that these accounts received funds stolen from the bank by hackers, some believe that freezing innocent individuals’ accounts is not an effective solution. Rume Ophi, a prominent figure in Nigeria’s crypto community, called it a disgrace to the country’s banking infrastructure and urged for thorough investigations instead. This incident raises further questions about the role of banks in enforcing regulatory measures and their impact on the Nigerian crypto industry.
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