The Securities and Exchange Commission (SEC) Nigeria has reaffirmed its commitment to leveraging blockchain intelligence in tackling the rising wave of cryptocurrency-related fraud, reinforcing its oversight of the country’s digital asset ecosystem.
Speaking during a joint webinar hosted by SEC Nigeria and global blockchain analytics firm Chainalysis on Monday, Director-General Dr. Emomotimi Agama stressed the importance of full transparency in crypto transactions as a foundation for stronger regulatory enforcement.
The webinar, themed “Combating Scams with Blockchain Intelligence,” brought together regulators, analysts, and industry stakeholders to discuss evolving threats in the digital finance space.
Agama Calls for Coordinated Action Against Crypto Fraud
“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?” Agama asked.
He warned that disunity and lack of collaboration among regulators and industry players could create an environment where scams thrive unchecked.
SEC’s Vision: Data-Driven Oversight and Blockchain Transparency
Agama detailed the SEC’s strategy to enhance technical capabilities by harnessing blockchain’s immutable nature to track illicit activities. This includes identifying wallet clusters, analyzing fund flows, and monitoring transactions across major blockchains such as Bitcoin and Ethereum.
“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.”
The SEC chief highlighted rising threats from fake decentralized finance (DeFi) protocols, NFT scams, and mirror exchange platforms that impersonate legitimate trading sites to steal user deposits. He also warned of “romance scams 2.0,” where fraudsters use dating apps to gain victims’ trust before soliciting crypto investments.
Chainalysis Report Reveals $178 Billion in Illicit Crypto Transactions
The urgency of SEC’s approach is backed by the Chainalysis 2025 Crypto Crime Report, which shows illicit crypto addresses received $178 billion in the last five years.
Key findings include:
- 2022: $54.3 billion illicit transactions (peak year)
- 2023: $46.1 billion
- 2024: $40.9 billion
- Stablecoins accounted for 63% of illicit transaction volumes.
- Bitcoin remains dominant in ransomware and darknet markets.
- Stolen funds in 2024 totaled $2.2 billion — a 21% increase from the previous year.
- Private key compromises made up 43.8% of stolen crypto, with North Korean hackers responsible for $1.34 billion.
ISA 2025: Landmark Digital Asset Regulation for Nigeria
Agama described the Investment and Securities Act (ISA) 2025, enacted in April, as a breakthrough in Nigeria’s crypto regulation. The law provides long-awaited clarity for digital asset operations, which had operated in a regulatory vacuum.
“Clearly, we believe the emergence of the ISA 2025 is a groundbreaker,” he said. “It ensures that as a nation, we provide clarity, and as a nation, we are able to cooperate with each other… It is also important that we do not stifle innovation.”
Towards a Safer Digital Asset Market
Agama urged regulators, technology providers, and industry leaders to unite in stopping crypto fraud at its earliest stages.
“With all the various tools at our disposal, it becomes clear that we must all brace up to the challenges of the future,” he concluded. “What we need to do collectively is to make sure we stop this right at the beginning.”
As Nigeria positions itself as a regional leader in digital finance, the SEC’s drive for transparency and intelligence-led regulation marks a decisive shift towards investor protection and market integrity in the crypto space.
