SEC Deploys AI, Blockchain To Crack Down On Ponzi Schemes, Illegal Digital Wallets

By TOSI ORE

THE Securities and Exchange Commission (SEC) has begun using artificial intelligence (AI) and blockchain analytics to trace illicit transactions, combat Ponzi schemes, and strengthen cybersecurity across Nigeria’s financial system.

SEC Director-General Dr. Emomotimi Agama disclosed this during a lecture at the Abuja Journalists Academy, noting that the initiative—developed in collaboration with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC)—aims to track and freeze illegal digital wallets and recover criminal proceeds.

“Our goal is to ensure innovation serves progress, not predation,” Agama said, warning that unregulated crypto activities have enabled scams, phishing, and money laundering.

Nigeria ranks among the top global adopters of digital assets, with over one-third of its population involved in crypto-related activity. To address rising risks, the SEC has strengthened its 2022 Rules on Digital Assets and Virtual Asset Service Providers (VASPs), built on licensing, compliance, and transparency.

Agama explained that the use of AI-driven monitoring systems will enhance market surveillance and enable quicker responses to suspicious activities, improving coordination between financial regulators and law enforcement agencies.

He stressed the need for balanced regulation that protects investors without stifling innovation, citing global standards such as the EU’s MiCA framework and FATF anti-money laundering guidelines.

“The future of finance is digital, but its foundation must remain ethical, transparent, and trustworthy,” he said.