Close Menu
  • Coins
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFT
  • Blockchain
  • DeFi
  • Metaverse
  • Regulation
  • Other
    • Exchanges
    • ICO
    • GameFi
    • Mining
    • Legal
  • MarketCap
What's Hot

Galaxy Digital Slips 8% Post-Earnings as Investors Take Profits Following Big Run Higher

06/08/2025

CZ Says Banks Blocking Crypto Will End After U.S. Executive Order

06/08/2025

Okratech Token and Web3 Decision Partner to Power Decentralized AI Ecosystems

06/08/2025
Facebook X (Twitter) Instagram
  • Back to NBTC homepage
  • Privacy Policy
  • Contact
X (Twitter) Telegram Facebook LinkedIn RSS
NBTC News
  • Coins
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. NFT
    5. View All

    Price Breaks All-Time High Record Again – Here’s What We Know

    04/08/2025

    Bitcoin Switzerland? El Salvador to Host First Fully Native Bitcoin Capital Markets

    04/08/2025

    Bitcoin Breaks $119K, but XLM and HBAR Aren’t Impressed by Its Meager Percentage Gain

    04/08/2025

    High-Stakes Consolidation Could Define Q3 Trend

    04/08/2025

    Market Prophet Tom Lee Explains Why He Chose Ethereum Over Bitcoin

    04/08/2025

    How Much of Ethereum’s Supply Is Lost Forever? Here’s the Amount That Must Be Excluded When Calculating Supply

    04/08/2025

    Ethereum Rainbow Chart predicts ETH price for August 1, 2025

    04/08/2025

    Ethereum (ETH) Reclaims $3,800. Is $4,000 Likely?

    04/08/2025

    The Sui Ecosystem’s Top 3 Altcoin Performers

    29/07/2025

    Floki Launches $69000 Guerrilla Marketing Challenge With FlokiUltras3

    28/07/2025

    Crypto Beast denies role in Altcoin (ALT) crash rug pull, blames snipers

    28/07/2025

    $1.6 Billion XRP Surge: Here’s What’s Unfolding

    28/07/2025

    Cloudflare Accuses Perplexity AI of Using Stealth Crawlers to Evade Website Blocks

    05/08/2025

    CryptoPunks and Pudgy Penguins Draw Major Sales

    04/08/2025

    NFT Sales Spike in July—but Still Miles Below 2024’s Highs

    03/08/2025

    Ethereum Collections Lead NFT Sales Today

    03/08/2025

    Galaxy Digital Slips 8% Post-Earnings as Investors Take Profits Following Big Run Higher

    06/08/2025

    CZ Says Banks Blocking Crypto Will End After U.S. Executive Order

    06/08/2025

    Okratech Token and Web3 Decision Partner to Power Decentralized AI Ecosystems

    06/08/2025

    JD.com’s Pivotal Move Unlocks New Digital Frontier

    05/08/2025
  • Blockchain

    Okratech Token and Web3 Decision Partner to Power Decentralized AI Ecosystems

    06/08/2025

    Pipe Network Launches Firestarter Storage as Decentralized Cloud Alternative on Solana

    05/08/2025

    AI bot ‘Clanker’ racks up $34M in swap fees launching Base memecoins

    05/08/2025

    Collably Network and Huostarter Join Forces to Democratize Web3 Launchpads

    05/08/2025

    Gaia AI Mainnet Launch Accelerates Mira’s Vision for Decentralized Trust in AI

    04/08/2025
  • DeFi

    Chainlink Introduces State Pricing to Improve Onchain Asset Valuation

    05/08/2025

    Stables Labs Launches USDX, sUSDX on Base Network for Advanced Cross-Chain Accessibility

    05/08/2025

    Arcadia Finance users reimbursed by DeFi hack insurance

    05/08/2025

    Strategic Hire Signals Explosive RWA Growth

    05/08/2025

    Aave repurchases 70,000 tokens, boosting DeFi lead

    05/08/2025
  • Metaverse

    Where Has the Metaverse Gone? Examining a Failed (and Costly) Trend

    01/08/2025

    From Metaverse to Machine Learning, Inside Meta’s $72 Billion AI Gamble

    31/07/2025

    AntVerse Integrates Terminus to Transform AI-Powered Metaverse with Web3 Payments

    25/07/2025

    The Sandbox Launches Largest LAND Auction Using GBM Protocol

    21/07/2025

    Elon Musk’s xAI Quietly Fixed Grok by Deleting a Line of Code

    09/07/2025
  • Regulation

    Galaxy Digital Slips 8% Post-Earnings as Investors Take Profits Following Big Run Higher

    06/08/2025

    JD.com’s Pivotal Move Unlocks New Digital Frontier

    05/08/2025

    Nasdaq, S&P 500 eye gains as stocks rebound

    05/08/2025

    Noah and VelaFi Partner to Bring Real-time Stablecoin B2B Payments to Latin America and Beyond

    05/08/2025

    U.S Neobank Slash Debuts Stablecoin with Stripe’s Bridge for Global Business Payments

    05/08/2025
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    DEX trading volume tops $1T for the first time in July, Hyperliquid leads record perp surge

    05/08/2025

    Coinbase to Delist Popular Cryptocurrency This August: Details

    05/08/2025

    Binance Sends Millions in Crypto to Wintermute Amid Transparency Questions

    05/08/2025

    Bitcoin Exchange Binance Deletes Numerous Altcoin Trading Pairs from Margin Trading! Here Are the Details

    05/08/2025

    ICO for bitcoin yield farming chain Corn screams we’re so back

    22/01/2025

    Why 2025 Will See the Comeback of the ICO

    26/12/2024

    Shrapnel to Leave Avalanche in New Partnership with Gala Games

    05/08/2025

    Google to Pit Top AI Models Against Each Other in Live Chess Tournament

    05/08/2025

    The Biggest Games Releasing in August 2025

    03/08/2025

    TaskOn Joins EPHYRA to Elevate AI-Powered Gaming Experience

    02/08/2025

    Core Scientific investors expected to resist CoreWeave’s merger bid

    05/08/2025

    Impressive 467 BTC Production in July

    05/08/2025

    Cango posts ‘massive’ July Bitcoin haul, boosting corporate treasury

    05/08/2025

    French MPs Float Plan to Mine Bitcoin With Surplus Nuclear Energy

    04/08/2025

    CZ Says Banks Blocking Crypto Will End After U.S. Executive Order

    06/08/2025

    Bitsonic CEO imprisoned a second time for over $70k fraud charge – how far does his crime go?

    05/08/2025

    Nigeria Calls for Action After $2.1B in Crypto Fraud Hits West Africa

    05/08/2025

    August 6 LINQTO Hearing Isn’t About Ripple’s $18M XRP Sales

    05/08/2025

    Galaxy Digital Slips 8% Post-Earnings as Investors Take Profits Following Big Run Higher

    06/08/2025

    CZ Says Banks Blocking Crypto Will End After U.S. Executive Order

    06/08/2025

    Okratech Token and Web3 Decision Partner to Power Decentralized AI Ecosystems

    06/08/2025

    JD.com’s Pivotal Move Unlocks New Digital Frontier

    05/08/2025
  • MarketCap
NBTC News
Home»Legal»Nigeria Calls for Action After $2.1B in Crypto Fraud Hits West Africa
Legal

Nigeria Calls for Action After $2.1B in Crypto Fraud Hits West Africa

NBTCBy NBTC05/08/2025No Comments5 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


Nigeria’s top securities regulator has sounded the alarm over a major rise in shady cryptocurrency transactions in West Africa—amounting to over $2.1 billion in 2024 alone. According to Business Insider Africa, this warning comes from Nigeria’s Securities and Exchange Commission (SEC) following a report by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA).

Why Nigeria Is Concerned

Speaking at the West Africa Compliance Summit in Cape Verde, SEC Director-General Emomotimi Agama highlighted the growing danger. He explained that criminals are misusing crypto tools—especially decentralized finance (DeFi) platforms and privacy coins—to commit fraud and fund illegal activity.

These concerns are not new, but Agama says the scale is now “no longer local.” He warned that bad actors banned in one country, like Nigeria, often move operations to nearby countries such as Ghana. The lack of a regional response, he says, is enabling the problem to grow.

Main Threats Outlined by Agama Include

  • DeFi “rug pulls”: Fraudsters attract investors into new projects, then disappear with the funds.
  • Fake crashes and unregistered exchanges: These platforms are often set up to trick users or operate without oversight.
  • Terror financing using privacy coins: Cryptocurrencies like Monero or Zcash are increasingly used to hide transactions.

The GIABA report adds that $2.1 billion in crypto-related transactions were flagged as suspicious in West Africa during 2024 alone. These numbers suggest serious flaws in how digital asset activity is monitored across the region.

SEC Pushes for Unified Licensing and Stronger Monitoring

Agama called on Economic Community of West African States (ECOWAS) members to adopt a Unified Virtual Asset Service Provider (VASP) Licensing System. He stressed that fragmented rules make it easy for scammers to shift between borders undetected.

He also announced new steps the SEC is taking in Nigeria:

  • AI-based blockchain monitoring tools to improve oversight
  • Tighter compliance checks for VASPs
  • Increased public awareness around fraud

The SEC’s plan includes more frequent audits of digital asset platforms, better>CBEX Ponzi Scheme: A Case Study in Crypto Fraud

One of the largest fraud cases prompting Nigeria’s new stance is the collapse of CBEX, a Ponzi scheme that falsely claimed to be tied to the China Beijing Equity Exchange.

CBEX promised high returns and attracted over 300,000 Nigerian investors, especially in Lagos and Abuja. Losses were initially estimated at ₦1.3 trillion (about $840 million), although revised figures suggest the real number may be closer to $6.1 million.

Regardless of the actual losses, the damage to public trust has been significant.

In response, the SEC has launched a national Ponzi scheme awareness campaign aimed at helping the public spot fake platforms early. Agama emphasized that educating users is just as important as enforcing rules.

Regional Challenges: Crypto Without Borders

One of the central issues raised by Agama is the ease with which digital asset operators can jump between jurisdictions. With differing laws and little coordination, a company or individual banned in Nigeria can legally restart operations in another ECOWAS country.

This “regulatory arbitrage” creates a loophole that’s been exploited by scammers and even terrorist groups, who take advantage of privacy-focused cryptocurrencies to avoid detection.

According to Agama, the only way forward is a harmonized regulatory framework for the West African region. He stated, “We must harmonize our frameworks, share intelligence, and adopt best practices.”

Looking Ahead: What the SEC Is Doing Next

The SEC plans to take a more aggressive approach to crypto oversight in the coming months. This includes:

  • Rolling out real-time transaction tracking
  • Requiring VASP registration and ongoing compliance
  • Working with other ECOWAS nations to align policy

These moves aim to ensure that Nigeria doesn’t become a weak link in the fight against crypto crime.

FAQs

  1. What is the $2.1 billion figure referring to?

    It refers to the total amount of suspicious cryptocurrency transactions reported across West Africa in 2024, as documented by GIABA.

  2. What is a Unified VASP Licensing System?

    It’s a proposed regulatory framework where all ECOWAS countries would follow the same licensing and compliance standards for crypto platforms, making it harder for fraudsters to exploit cross-border loopholes.

  3. What was the CBEX fraud in Nigeria?

    CBEX was a fraudulent crypto platform that claimed ties to the China Beijing Equity Exchange. It collapsed in 2024 and caused estimated investor losses of up to $840 million, though newer figures suggest losses closer to $6.1 million.

Conclusion

According to Nigeria, unregulated cryptocurrency activity poses a serious threat to financial stability, investor safety, and regional security. With over $2.1 billion in suspicious transactions logged in one year, the stakes are high. The SEC’s push for unified licensing, AI-driven monitoring, and public education is a step toward reclaiming control—but success depends on collaboration across West Africa.

The crypto space in Africa is growing fast, but so are the risks. Unless countries act together, criminals will keep taking advantage of the gaps.

Resources:

  1. Business Insider Report: https://africa.businessinsider.com/local/markets/nigeria-hits-panic-button-as-west-africa-logs-dollar21bn-in-suspicious-crypto/rww9zgs

  2. North Africa Post Report: https://northafricapost.com/89363-nigeria-sounds-alarm-as-2-1bn-in-suspicious-crypto-transactions-shake-west-africa.html

  3. BBC News Pidgin Report About CBEX Collapse: https://www.bbc.com/pidgin/articles/cgjly4d65j5o

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
NBTC

Related Posts

CZ Says Banks Blocking Crypto Will End After U.S. Executive Order

06/08/2025

Bitsonic CEO imprisoned a second time for over $70k fraud charge – how far does his crime go?

05/08/2025

August 6 LINQTO Hearing Isn’t About Ripple’s $18M XRP Sales

05/08/2025

EU proposal to scan all private messages gains momentum

05/08/2025
Add A Comment

Comments are closed.

Top Posts
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook X (Twitter) LinkedIn RSS
Top Insights

Galaxy Digital Slips 8% Post-Earnings as Investors Take Profits Following Big Run Higher

06/08/2025

CZ Says Banks Blocking Crypto Will End After U.S. Executive Order

06/08/2025

Okratech Token and Web3 Decision Partner to Power Decentralized AI Ecosystems

06/08/2025
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Type above and press Enter to search. Press Esc to cancel.