Nigerian SEC Partners With Police To Tackle Crypto Ponzi Schemes – Details
The Nigerian Securities and Exchange Commission (SEC) is paying close attention to the local cryptocurrency industry, as evidenced by recent developments. While introducing minimum capital requirements for virtual asset service providers (VASPs), the securities regulator also partnered with the Nigerian Police Force (NPF) against cryptocurrency fraud, among other illegal activities.
Nigeria’s SEC is looking to improve the protection of Crypto investors
According to local media Voice of Nigeria, the SEC is coordinating efforts aimed at protecting investors and transparent market operations in the crypto ecosystem. In a recent meeting with the NPF, the Director General of the Commission (DG), Dr. Emomotimi Agama, spoke to the Inspector General of Police (IGP), Kayode Egbetokun, about the concern about malicious players in the financial markets who exploit the trust of investors for their own gains.
Dr. Agama said:
They cloak their deception in the attractive but misunderstood language of cryptocurrency and forex trading. They target the weak, the optimistic, and the naive, leaving a trail of ruined lives, depleted pensions, and people’s trust. This is not just a financial case; it is a public threat that erodes public confidence in our entire financial system.
Currently, there is a gap, a seam between identification and enforcement that these fraudsters are exploiting. Today, we aim to close that gap once and for all.
In particular, the SEC DG proposes the creation of a special team of SEC-NPF with members who bring understanding of financial principles and operations as well as strategic wisdom to curb this investment crime and protect the Nigerian cyberspace. The IGP agreed to the request for cooperation while reiterating his firm commitment to helping the SEC achieve its goals.
Crypto Fraud in Nigeria
Notably, Nigerians have been victims of cryptocurrency investment scams for the past few years. The most prominent of these is the Crypto Bridge Exchange (CBEX) platform, which crashed in April 2025, losing more than N1.3 trillion ($916 million) in user funds.
The Nigerian SEC is strongly committed to reducing such risks as demonstrated by the recent engagement with the NPF and other measures such as the revised minimum capital requirements for VASPs and the published list of all fraudulent investment and financial entities.
Notably, Nigeria remains one of the fastest growing crypto hubs in the world. According to information from TripleA, about 10.34% of the Nigerian population, that is, 22 million people, own one digital asset or the other, therefore indicating the need for effective management of the system of supervision and protection.
Featured image from Oriental News Nigeria, chart from Tradingview
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