The Nigeria Securities and Exchange Commission (SEC Nigeria) has reaffirmed its commitment to harnessing blockchain intelligence in the fight against cryptocurrency-related fraud.
In collaboration with global analytics firm, Chainalysis, SEC Nigeria hosted a webinar titled “Combating Scams with Blockchain Intelligence,” where Director-General, Dr. Emomotimi Agama, emphasized the essential role of transparency in crypto oversight.
The webinar signals SEC Nigeria’s collaboration with Chainalysis to enable data-driven and technolgically-aligned crypto regulatory oversight.
Agama said the need to trace illicit activity by analyzing wallet clusters, tracking fund flows, and logging all Bitcoin and Ethereum transactions as part of a data-driven enforcement strategy.
“At the SEC, we need to do deep dives into data intelligence,” he said.
“We must speak about the technical foundations that drive us to transaction transparency – where every Bitcoin, Ethereum transaction is permanently recorded, and wallets belonging to the same entity are identified through flow analysis and trading funds from sources of information.”
Addressing the evolving threats, Agama asked:
“When you imagine the future of cryptocurrency transactions, you imagine that if the fraudulent practices are already climbing the way they are now, what will the future hold if we all sit doing nothing?
If we all sit not being coordinated, not collaborating, and finding differences that we should not find, we risk enabling a dangerous future.”
Agama expressed concern about the increasing sophistication of fraudulent schemes – including fake DeFi protocols, deceptive NFT projects, mimic phishing exchanges, and romance scams engineered via social media platforms like X, Telegram, WhatsApp, and dating apps. These scams erode investor confidence and threaten the integrity of Nigeria’s digital markets.
Supporting these efforts, the Chainalysis 2025 Crypto Crime Report highlighted that illicit crypto addresses received $178 billion over the past five years, with 2024 alone seeing $40.9 billion in illicit funds. Stablecoins accounted for 63% of these volumes. Notably, private key compromises accounted for 43.8% of stolen funds, and North Korean-affiliated hackers were responsible for $1.34 billion – roughly 61% of total losses.
STABLECOINS | 63% of Illicit Crypto Funds Flowed Through Stablecoins in 2024, Says @chainalysis
Since 2021, there has been a steady diversification away from $BTC, with stablecoins now occupying the majority of all illicit transaction volume (63%).https://t.co/4FDiJyCxva pic.twitter.com/Jk6M6fHQcb
— BitKE (@BitcoinKE) January 16, 2025
Coinciding with this webinar, Nigeria enacted the Investment and Securities Act (ISA) 2025, which came into effect in April 2025. This statute provided long-awaited clarity for digital asset operations and reinforced regulatory authority over the crypto ecosystem – solidifying the SEC’s oversight capabilities while encouraging innovation.
LATEST |
Nigeria legalizes crypto & criminalizes Ponzi schemes
After ~$4.9B lost to scams like #CBEX, the new law:
Regulates VASPs under SEC Bans Ponzi schemes (10 yrs jail) Boosts investor protection
Crypto gets clarity in #Naijahttps://t.co/OAwiRK0La9 pic.twitter.com/CqEdhD9THD
— BitKE (@BitcoinKE) June 16, 2025
According to Agama, the clear regulatory stance has value to both investors and service providers.
For investors:
Stronger protection
Reduced exposure to scams
Greater confidence in the Nigeria digital asset market
For crypto service providers and exchanges:
Stricter compliance requirements
Mandatory reporting of suspicious transactions
Integration of blockchain analytics into routine operations
REGULATION | The Nigeria Ministry of Foreign Affairs Laments Rising Cases of Crypto Scams Led By Foreign Nationals, Terming it Cyber Slavery
The foreign suspects train their Nigerian accomplices in executing scams.https://t.co/UnCJd0xPNH @officialEFCC @NigeriaMFA pic.twitter.com/QiPpUfdugV
— BitKE (@BitcoinKE) April 29, 2025
Agama urged for unified action among regulators, industry players, and technology providers to proactively tackle crypto fraud by harnessing blockchain’s inherent traceability to protect market integrity and protect investors:
“With all the various tools at our disposal, it becomes clear that we must all brace up to the challenges of the future.
What we need to do collectively is to make sure we stop this right at the beginning.”
REGULATION | Over $2 Billion in Suspicious Crypto Transactions Shake West Africa – SEC Nigeria Calls for Regional Regulatory Cooperation
“The Naira’s depreciation, Ghana’s Cedi weakness, and persistent forex shortages have fueled this shift.” – Dr Agamahttps://t.co/yn24lhmtLX pic.twitter.com/a7lKnTeE8H
— BitKE (@BitcoinKE) August 12, 2025
Stay tuned to BitKE for deeper insights into regulatory crypto space in Africa.
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