The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerian investors, cautioning them against investing in Shalom Coin (SHLM) — a digital asset the commission has declared unregistered and unauthorized for trading in the Nigerian capital market.
The regulatory body’s alert, titled “SEC says Shalom Coin is not registered,” underscores the growing concern over fraudulent cryptocurrency schemes targeting unsuspecting Nigerians.
In its latest circular, the SEC stated that it had observed the activities of promoters marketing Shalom Coin across various online platforms and social media channels as a supposed “meme coin” or “community token.”
The promoters have reportedly made speculative claims of potential returns, drawing in investors with promises of high yields and blockchain-based credibility.
SEC Says Shalom Coin Is Not Registered and Warns Investors
The commission clarified that preliminary findings indicate Shalom Coin (SHLM) is being presented as an investment opportunity issued on the Ethereum Blockchain as an ERC-20 token.
However, according to the SEC, the promoters and issuers behind the project are not registered or licensed to operate within Nigeria’s financial market framework.
“The public is hereby informed that the promoters and/or issuers of Shalom Coin (SHLM) are not registered to operate in any capacity in the Nigerian capital market.
Consequently, Shalom Coin (SHLM) is not approved by the Commission for issuance, trading, or offering to the investing public in Nigeria,” the circular stated.
The SEC emphasized that before investing in any digital asset, members of the public should verify the authenticity of such assets, their promoters, and associated trading platforms through the Commission’s official website — www.sec.gov.ng/cmos.
This, the Commission noted, is crucial for protecting investors from losses and scams associated with unregulated products.
Concerns Over High-Risk Crypto Schemes
The Commission further disclosed that additional findings from its ongoing review of Shalom Coin revealed several red flags, particularly within its smart contract design.
According to the SEC, the token includes embedded features that enable its creators to alter vital settings such as trading permissions, transaction fees, and total token supply — all of which could easily be manipulated for fraudulent purposes.
“The token’s smart contract allows the issuer or creator to modify critical parameters, making the risk of a potentially fraudulent crypto-asset scheme very high,” the statement read.
This discovery, according to analysts, raises concerns similar to past crypto-related Ponzi schemes that have cost Nigerian investors billions of naira.
The SEC, therefore, reiterated that any individual or group investing in unregistered crypto products like Shalom Coin (SHLM) does so entirely at their own risk.
Nigeria’s Crackdown on Unregulated Digital Assets
This latest alert comes as part of the SEC’s broader effort to sanitize the digital asset ecosystem and protect the investing public from exploitative schemes.
Over the past two years, the commission has repeatedly warned about the proliferation of unlicensed cryptocurrency projects, often disguised as innovative fintech or blockchain ventures.
In September 2025, the SEC issued a similar warning concerning AfriQuantumX, which it described as an unregistered Ponzi-style investment platform, where investors stood to lose as much as ₦76 billion.
These actions highlight the commission’s continued focus on investor protection amid the rapid growth of Nigeria’s digital finance space.
Industry observers say the SEC’s warning — “SEC says Shalom Coin is not registered” — reinforces its commitment to safeguarding market integrity while promoting responsible innovation.
The Commission has maintained that while it supports the adoption of blockchain technology, all operators must comply with existing registration and disclosure requirements.
Implications for Nigerian Crypto Investors
For investors, the SEC’s announcement serves as a crucial reminder to prioritize due diligence when evaluating cryptocurrency investments.
Experts advise that investors should confirm that any token, exchange, or trading platform they engage with is registered or approved by the SEC.
Digital finance analyst, Emmanuel Adebayo, noted that the SEC’s consistent warnings reflect the growing sophistication of online scams in Nigeria’s crypto space.
“We’re seeing an increase in meme coins and community tokens that rely on hype rather than real economic value,” he said.
“The statement that ‘SEC says Shalom Coin is not registered’ is not just a notice — it’s a wake-up call to investors to stop chasing quick profits.”
Investor Protection and Verification Measures
The SEC continues to urge Nigerians to verify investment opportunities via its Capital Market Operators (CMOs) directory before committing their funds.
According to the commission, this step remains the most effective way to confirm whether a company, platform, or individual has the required authorization to operate in the country’s financial ecosystem.
Investors are also encouraged to stay informed about regulatory developments and avoid being influenced by social media promotions, celebrity endorsements, or exaggerated claims of returns.
“Members of the investing public are therefore strongly advised to exercise utmost caution in dealing with Shalom Coin (SHLM) or any similar unregistered digital asset,” the SEC said.
A Growing Need for Crypto Regulation Awareness
The renewed warning once again brings Nigeria’s cryptocurrency regulation debate into focus.
As digital currencies continue to attract mainstream interest, regulatory oversight remains essential to balance innovation with investor protection.
Financial experts believe that stronger collaboration between the SEC, the Central Bank of Nigeria (CBN), and law enforcement agencies could help curb the spread of deceptive crypto products.
For now, the message remains clear — SEC says Shalom Coin is not registered, and investing in such an unregulated token carries significant risk. As digital assets gain popularity, the onus is on investors to stay vigilant, verify legitimacy, and prioritize safety over speculation.
