The Securities and Exchange Commission (SEC) and Economic and Financial Crimes Commission (EFCC) have jointly flagged a sharp rise in crypto-based crimes, warning that terrorist groups and fraudsters are exploiting loopholes in Nigeria’s digital finance space.
The SEC cautioned Nigerians against unauthorized cryptocurrency platforms such as unregistered meme tokens like Punisher Coin (PUN) which lack regulatory approval and appear structured for pump-and-dump schemes or Ponzi pyramid tactics.
Invest only via SEC-approved Virtual Asset Service Providers (VASPs) to avoid scams.
Director-General Dr. Emomotimi Agama emphasised: “Digital innovation brings new risks. Fraud is rising fast, undermining market integrity.”
The SEC’s ISA 2025 now classifies virtual assets as securities subject to regulatory oversight.
EFCC head Ola Olukoyede revealed that young, often unwitting, crypto traders are being used as conduits for terror financing. Investigations uncovered that over 1,000 bank accounts linked to crypto trading were tied to illicit sponsorship networks.
Further, the EFCC raided a Lagos-based syndicate detaining nearly 792 suspects, including foreigners, for orchestrating crypto investment and romance scams, generating millions through fraudulent schemes.
A related crackdown saw law enforcement foil frauds worth millions, $4 million, ₦400 million, and more through phishing, BVN manipulation, and crypto wallet scams.
The crypto economy in Nigeria offers innovation but it also attracts predators.
Fraud, terror financing, and shady platforms thrive in regulatory blind spots. If you’re investing in crypto, due diligence isn’t just wise, it’s essential.
