Joy Agwunobi
The Securities and Exchange Commission (SEC) has stepped up efforts to combat cryptocurrency-related fraud in Nigeria, partnering with blockchain analytics firm Chainalysis to strengthen its ability to detect and disrupt illicit activities in the country’s growing digital asset market.
The move comes amid mounting concerns over the security of virtual currency transactions and the sophistication of financial crimes in the sector.
Speaking during a joint webinar with Chainalysis, themed “Combating Scams with Blockchain Intelligence”, Emomotimi Agama, director-general of SEC, emphasised the need for coordinated action to address the threat.
“Transparency in crypto transactions should be the foundation of enforcement in this sector,” Agama said, warning that without collaboration between regulators, technology providers, and industry players, fraudulent activities could become more dangerous in the future.
Under the new partnership, the SEC will leverage blockchain’s immutable transaction records to track illicit fund movements, identify wallet clusters, trace transfers, and analyse transaction histories across major networks such as Bitcoin and Ethereum. Agama said these tools would help the commission detect scams earlier and respond more swiftly.
The urgency of the initiative is reinforced by data from the Chainalysis 2025 Crypto Crime Report, which revealed that illicit crypto addresses received $178 billion globally over the past five years. The highest annual volume was recorded in 2022 at $54.3 billion, followed by $46.1 billion in 2023 and $40.9 billion in 2024.
“These figures highlight the scale of the problem and the need for advanced analytics in enforcement work,” Agama said, adding that Nigeria must enhance its technical capacity to keep pace with the evolving tactics of financial criminals.
The partnership is being implemented under the framework of the Investment and Securities Act (ISA) 2025, which came into effect in April. Agama described the legislation as a significant step towards establishing clear rules for Nigeria’s digital asset market, while enabling cooperation with international partners without stifling innovation.
He urged all stakeholders to work proactively to stop criminal activity at its source.
“With all the various tools at our disposal, we must brace up for the challenges ahead. Our collective goal should be to safeguard investors and maintain market integrity,” he said.
By integrating blockchain analytics into its operations, the SEC aims to position Nigeria among regional leaders in regulated digital finance, creating a safer environment for cryptocurrency transactions and investor participation.
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