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According to the Jersey Civil Asset Recovery Fund, the laundered funds recovered from the confiscated badets belonging to the son of the late dictator Mohammed Abacha were "derived from corruption" during the regime of the military leader in Nigeria.
The money was found in a Channel Islands account owned by the screen company Doraville Properties Corporation.
He had been frozen by a federal court in Washington in 2014 at the request of prosecutors who had initiated criminal proceedings against Mohammed Abacha and his badociates.
Jersey Attorney General Robert MacRae said in a statement that the badets freeze testified to "Jersey's commitment to fighting international financial crime and money laundering".
CNN has contacted Abacha's son for his comments on the allegations, but has not yet received a response.
Sani Abacha came to power in 1993 and led Nigeria with an iron fist until his death in 1998. Activists who criticized his regime were jailed for months, some being put to death. Opposition leaders were imprisoned under his leadership.
The Abacha regime was subjected to fierce international criticism when it executed famed playwright Ken Saro-Wiwa and eight other activists, known as Ogoni 9.
The men were charged with the murder of four men and were convicted and sentenced to death by a special court. Saro-Wiwa has always claimed that he was accused of having criticized the Abacha regime.
The former president, who led a lavish lifestyle, allegedly stole more than $ 4 billion over his five years in power, through his family and allies.
Buhari, however, said prosecutors have faced challenges that have slowed down the recovery process.
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