The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has raised alarm over rising cases of fraud linked to cryptocurrency and digital assets across West Africa, saying the region recorded $2.1 billion worth of suspicious crypto transactions in 2024 alone.
Dr. Agama made this known while speaking at the West Africa Compliance Summit held recently in Praia, Cape Verde. He cited findings from the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), which showed a troubling increase in money laundering and criminal activities using digital currencies.
“DeFi ‘rug pulls’ continue to defraud unsuspecting users. GIABA reported $2.1 billion in suspicious crypto-linked transactions in West Africa in 2024, with terror groups exploiting privacy coins to evade detection,” Agama said.
He warned that although more people across Africa are using cryptocurrencies and other virtual assets, criminals are taking advantage of weak laws and poor compliance systems to operate freely.
According to the SEC boss, investors have lost huge sums due to fake platform crashes, unregistered crypto exchanges diverting funds, and poor monitoring by regulatory authorities.
Dr. Agama stressed that there is urgent need for countries in the region to work together to fight digital asset fraud. He recommended the introduction of a unified licensing system for virtual asset service providers (VASPs) across ECOWAS.
“We must harmonise our regulatory frameworks, share intelligence, and adopt best practices to close loopholes exploited by bad actors. A trader banned in Nigeria simply relocates to Ghana. ECOWAS must adopt a Unified VASP Licensing System,” he added.
The SEC boss pointed to one of the worst crypto-related fraud cases in recent Nigerian history—CBEX—as a wake-up call. CBEX, which claimed to be affiliated with the China Beijing Equity Exchange, operated as a Ponzi scheme and ended up collapsing, leaving thousands of Nigerians in financial distress.
When CBEX collapsed, about 300,000 investors reportedly lost around ₦1.3 trillion (equivalent to $840 million). However, further investigations later estimated the real losses to be closer to $6.1 million.
In response, the SEC launched a public awareness campaign across major cities like Lagos and Abuja to warn citizens against such high-risk platforms and educate them about safe investment practices.
The Director-General said that CBEX was only one of many new forms of financial fraud growing in West Africa, where fraudsters use digital platforms to target unsuspecting investors who are lured by promises of quick returns.
He urged the public to always verify the authenticity of investment platforms and check whether such operators are registered with the SEC or any financial regulatory body in their country.
Digital asset scams are not new to Nigeria. In recent years, several Ponzi schemes, forex trading platforms, and crypto investment companies have disappeared with investors’ funds. The lack of coordinated oversight across West African countries continues to make it easier for such operators to move between borders and set up again under new names.
The SEC has promised to tighten regulations, increase surveillance of digital asset markets, and collaborate with other regulators across the continent to reduce the risks for investors.
Dr. Agama also encouraged financial institutions, compliance officers, and tech companies to work closely with regulators to identify red flags and stop fraudulent activities before they cause further damage.
Experts at the summit called on ECOWAS member states to create a regional task force focused on cryptocurrency regulation, with powers to share intelligence and crack down on cross-border digital fraud.
For now, authorities are urging Nigerians and West Africans at large to be cautious, avoid schemes that sound too good to be true, and always check the credibility of any financial service provider.
