Digital Assets Fraud Undermining Market Integrity, SEC DG Warns

SEC Director-General Emomotimi Agama raises alarm over rising virtual asset fraud in Nigeria, pledges tighter regulation, investor education, and international collaboration to protect market integrity.

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In a stern warning to investors, regulators, and digital asset platforms, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has identified virtual asset fraud as a rising threat to Nigeria’s capital market stability, investor confidence, and the integrity of financial systems across the continent.

Speaking at a forum in Abuja commemorating the African Union Anti-Corruption Day 2025, themed “Understanding Virtual Assets and Investment Fraud,” Agama expressed concern over the increasing exploitation of unsuspecting investors through fraudulent digital schemes.

“Today, as digital innovation transforms financial systems, we face new challenges, particularly the rise of virtual asset fraud and sophisticated investment scams exploiting unsuspecting investors,” Agama said.



According to him, these fraudulent practices not only undermine trust but also divert critical resources away from development projects and destabilize economic ecosystems intended to foster inclusive growth.


Agama revealed that the Securities and Exchange Commission, in response to the emerging digital threats, has strengthened its regulatory framework through the newly introduced Investment and Securities Act (ISA) 2025. This legislative upgrade grants the Commission primary authority over all virtual assets classified as securities or investment products.

“The ISA 2025 gives us a clear mandate. As the primary regulator, we are committed to enhancing investor education, refining our digital asset oversight frameworks, and collaborating internationally to stem illicit financial flows,” Agama stated.



He emphasized that the Commission is focusing on three key strategic areas:

Investor protection and education: Equipping investors to recognize and avoid investment scams.

Regulatory enhancement: Updating policies to match the fast-evolving nature of blockchain-based assets like cryptocurrencies, tokens, and DeFi instruments.

Global collaboration: Partnering with financial intelligence units, tech regulators, and law enforcement to trace, prevent, and penalize fraud.



The SEC DG’s remarks align with broader continental concerns that financial fraud, particularly in the digital sphere, is weakening Africa’s position as an emerging investment destination. The AU Anti-Corruption Day, which draws participation from stakeholders across Africa, has increasingly focused on the intersection of technology and finance.

Agama noted that while digital assets have the potential to revolutionize commerce and capital flow, the lack of compliance infrastructure has created loopholes exploited by fraudsters. This risk is amplified in countries with low digital literacy and weak enforcement.



The Nigerian government, through agencies like the Central Bank of Nigeria (CBN), the Nigeria Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC), has initiated joint operations to clamp down on fake crypto investment platforms, Ponzi schemes, and illicit financial networks.

Recently, the SEC launched a compliance initiative requiring all virtual asset service providers (VASPs) to register with the Commission and meet strict Know-Your-Customer (KYC) and Anti-Money Laundering (AML) standards. Defaulters face asset seizure, blacklisting, and legal prosecution.

Dr. Agama urged the public to verify all digital investment offers with the SEC and avoid platforms promising unrealistic returns. He also encouraged the media, civil society, and fintech players to join the awareness campaign and support credible financial innovation.

“No investor should fall victim to fraud for lack of information. Our mission is to ensure a safe, transparent, and efficient capital market that supports Nigeria’s economic goals,” Agama concluded.



As Nigeria awaits the impact of the ISA 2025 implementation, analysts believe robust enforcement and grassroots education will be crucial to reclaiming public trust in digital finance and sustaining investor inflows in the years ahead.

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