SEC seeks police help to tackle ponzi and crypto scams

The Securities and Exchange Commission has sought the support of the Nigeria Police Force to intensify the clampdown on cryptocurrency fraudsters, Ponzi scheme operators and other investment scammers operating outside the regulated capital market.

The Director-General of SEC, Emomotimi Agama, made the call during a courtesy visit to the Inspector-General of Police, Kayode Egbetokun, at the Force Headquarters on Wednesday in Abuja, stressing the need for stronger collaboration to protect investors and safeguard the nation’s financial system.

The SEC boss said the commission, as the apex capital market regulator, has the mandate to protect investors, ensure fair and transparent markets, and promote economic growth, but noted that many fraudsters operate beyond its regulatory reach.

According to him, the criminals exploit public trust by promising unrealistic returns and disguising fraudulent schemes as cryptocurrency or forex investments, leaving many Nigerians with depleted savings, lost pensions and broken trust.

Agama said, “We are gathered here today, united by a single urgent mission: to protect the hard-earned savings and financial dreams of the Nigerian people. We are here to forge an alliance against a common enemy—the sophisticated, predatory and heartless criminals who operate Ponzi schemes, investment frauds, cryptocurrency scams and related offences.SEC is the sentinel at the gates of Nigeria’s formal capital market.

“However, we face adversaries who operate in the shadows outside our regulated markets. They exploit the trust of our people. They promise absurd returns such as 200 per cent in 30 days and similar falsehoods. They cloak their deceit in the glamorous but often misunderstood language of cryptocurrency and forex trading, targeting the vulnerable, the optimistic and the unsuspecting—leaving behind shattered lives, depleted pensions and broken trust.”

He described investment fraud and Ponzi schemes as not only financial crimes but also a social menace capable of eroding confidence in the entire financial system, adding that effective enforcement requires the investigative powers and nationwide reach of the police.