Nigeria’s Securities and Exchange Commission (SEC) is on high alert following a sharp rise in questionable cryptocurrency transactions across West Africa.
The concern was voiced by SEC Director-General, Dr. Emomotimi Agama, who cited findings from the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA).
According to the report, the region witnessed an estimated $2.1 billion in suspicious crypto-linked transactions in 2024 alone.
Speaking at the West Africa Compliance Summit in Praia, Cape Verde, Dr. Agama expressed deep concern over how criminal groups are taking advantage of weak regulatory systems and compliance loopholes in the growing virtual assets space across the continent.
“DeFi ‘rug pulls’ continue to defraud unsuspecting users. GIABA reported $2.1 bn in suspicious crypto-linked transactions in West Africa in 2024, with terror groups exploiting privacy coins to evade detection,” he said.
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As reported by The Punch, Dr. Agama noted that several investors have suffered heavy losses due to manipulated market crashes, unregistered exchanges diverting funds, and poor oversight.
In response, he said the SEC is intensifying its surveillance of digital asset activities and called for coordinated regional efforts to tackle the growing threat.
“We must harmonise our regulatory frameworks, share intelligence, and adopt best practices to close loopholes exploited by bad actors. A trader banned in Nigeria simply relocates to Ghana. ECOWAS must adopt a Unified VASP Licensing System,” he stated.
The Director-General also referenced the CBEX Ponzi scheme as one of the most notable fraud cases in recent years.
He disclosed that the SEC has launched a public awareness campaign in major cities such as Lagos and Abuja to help citizens avoid falling victim to similar scams.
CBEX, which claimed to be the China Beijing Equity Exchange, collapsed in Nigeria, leaving around 300,000 investors with losses estimated at ₦1.3 trillion (approximately $840 million).
Investigations later confirmed it was a Ponzi scheme, though the actual losses may be closer to $6.1 million.
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