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February 9, 2021
Comments Off on FBI Warned FG & CBN before the Nigerian Crypto Ban
Recently, Nigeria escalated to becoming the world’s second-highest crypto transactor. It was raking cryptos around $ 200 Million or more in a week. This instigated CBN and other regulatory authorities to look into the matter. But, with no proper evidence, CBN had to force a total shutdown. After this CBN prohibited all financial institutes from allowing payments to crypto operators.
FBI’s role
In recent research, multiple facts have escalated amidst the countrywide ban. In addition, major banks like Apex stopped all their payment facilities to crypto exchanges. However, people thought 
this was a temporary regulatory measure to prevent ransom donations.
this was a temporary regulatory measure to prevent ransom donations. An investigation by THISDAY revealed that the ‘FBI’ tipped the federal authorities. Above all, the FBI warned the Nigerian regulators about these ransom transactions. As millions of dollars were coming into Nigeria by fraudsters using cryptocurrencies. Also, they said that the money was illegally acquired from western countries like the USA. The money racked contained relief funds for COVID-19. In addition, this fund was to lower the impact of lockdown on businesses and the citizens of those countries.
Who were the conspirers?
There are no valid proofs that can identify the persons responsible for this. However, THISDAY revealed that the FBI has discovered the group behind this activity. They are Nigerians who are also known as “yahoo boys.” These goons raked around $300 Million into Nigeria by using cryptocurrency every week. FBI indicates that they took charge of large sums of money. Above all, the money was for stimulus to citizens affected by the pandemic.
Why is the money un-traceable?
Cryptocurrencies are not controlled by the government. A person can use it to buy and sell goods as per their face value. It uses a strongly cryptographed online ledger for making secure transactions. This is the reason why CBN has failed to locate the true conspirers. Because these transactions are very hard to trace.
To avoid federal charges this group sent cryptos to Nigeria every week. These were worth millions. Due to its un-traceable nature both the authorities of Nigeria and the US are unable to locate that money.
Was a Ban the Only option?
The Nigerian economy was already on its knees due to the global pandemic. And CBN was aware that these 
funds could destabilize the Nigerian economy. Due to which they had to use force to control this outbreak. After the ban CBN faced severe criticism for making harsh and unfavorable decisions. Many backlashes kept coming from the Nigerian crypto community and its old leaders.
funds could destabilize the Nigerian economy. Due to which they had to use force to control this outbreak. After the ban CBN faced severe criticism for making harsh and unfavorable decisions. Many backlashes kept coming from the Nigerian crypto community and its old leaders. Former VC Atiku Abubakar released a statement opposing CBN’s decision. He said, there are more severe problems like unemployment that need more attention. He stated that Nigeria should consider opening-up its economy and creating more jobs. Nigeria has already seen many economic losses, he added.
Accordingly, he stated that this is not the right time to impose such strict policies. As other regulations can create better outcomes without affecting Nigeria’s capital inflow. He even advised Apex bank to rethink their choices. Thereby, opposing CBN’s decision to close the country’s economy.
