Investors around the world are using P2P to trade cryptos directly, without going through a trusted third party. They exchange their cryptos for other tokens or for cash. This is how P2P has enabled Nigerian investors to continue using crypto despite CBN restrictions. Indeed, the Central Bank of Nigeria recalled a regulation in 2021 that prevented financial institutions from offering crypto services. Now she decides to report and freeze the bank accounts of crypto investors in P2P.
CBN flags investors’ bank accounts after Flutterwave case
As Nigeria plans to use blockchain to drive economic growth, things are getting tougher for crypto users. Indeed, the CBN flagged the bank accounts of investors using P2P, following a hacking case. Investors did not fail to express their disagreement with this decision by the central bank. It all started with the flutterwave hack, which is a Nigerian fintech company. This caused a loss of almost 6.5 million dollars, which represents almost 3 billion naira.
It turns out that after the attack, some crypto users’ bank accounts allegedly received some of the stolen funds. Nothing has been proven yet, but as part of its investigation, the CBN decided to report the suspected accounts. Also, the Nigerian justice accepted on February 27 an ex-parte petition that was filed the same day. The request requested, more or less, the freezing of 107 bank accounts, including their fifth beneficiaries. Then several other Nigerians claimed to have had their accounts frozen after the hack.
In addition, sources of information revealed that it was Flutterwave’s legal counsel who reported the issue. Indeed, Albert Onimole warned the deputy police commissioner of Yaba, in Lagos, on February 19, 2023. He told him about a illegal transfer of nearly $6.5 million Flutterwave accounts.
According to several members of the community, the current situation may discourage Nigerian consumers who have not yet invested in crypto. Still, there are several opportunities to be seized through new crypto projects. According to some, businesses have even collapsed following the CBN’s decision. Indeed, some unsuspecting contractors reportedly received payments for their services with the stolen funds and are now facing legal issues.
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