SEC Exposes Another Investment Scam, Warns Nigerians
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- Authorities warned Nigerians to avoid a fraudulent cryptocurrency scheme promoting a digital token called Shalom Coin (SHLM)
- The commission described SHLM as an unregistered digital asset being marketed as an investment opportunity
- The SEC once again advised Nigerians to verify the authenticity of any cryptocurrency or digital asset before investing
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Securities and Exchange Commission (SEC) has issued a warning to the public about a cryptocurrency called Shalom Coin (SHLM), which is being advertised as a potential investment token issued on the Ethereum blockchain.
Source: UGC
In a notice published on X, the SEC stated that Shalom Coin is being aggressively marketed across social media platforms as a “meme coin” or community token, with misleading claims of possible high returns.
According to the SEC, its preliminary findings revealed that the token’s smart contract allows the issuer to alter crucial parameters such as trading permissions, transaction fees, and total token supply, exposing investors to a high risk of fraud.
The commission said that Shalom Coin (SHLM) and its promoters are not registered to operate in any capacity within Nigeria’s capital market and that the digital asset has not been approved for issuance, trading, or offering to the investing public.
The statement reads:
“The Commission wishes to notify the general public that the promoters or issuers of Shalom Coin (SHLM) are not licensed or authorised to operate in any capacity within Nigeria’s capital market. As a result, the token has not been approved by the SEC for issuance, trading, or any form of public offering.
“Investors are strongly cautioned against engaging with Shalom Coin (SHLM) or any other unregistered digital asset. Anyone who chooses to invest in such products does so entirely at their own risk, as the Commission will not be able to provide protection or redress in the event of loss.”
The SEC urged Nigerians to avoid any dealings with Shalom Coin (SHLM) or its representatives.
The regulator warned that investors who engage with such unregistered digital assets risk losing their money entirely.
Source: Facebook
SEC urges Nigerian to verify before investing
The SEC also reminded Nigerians to always verify the registration status of any digital asset or investment platform through its official website before committing funds, BusinessDay reports.
The statement added:
“The Commission also advice investors and the general public to verify the legitimacy of any digital asset, its promoters, and associated trading platforms via its official website www.sec.gov.ng/cmos before participating in any cryptocurrency or digital investment activity.”
CBN confirms FG may adopt crypto
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) confirmed that the Federal Government was studying stablecoins, digital currencies pegged to real-world assets like the US dollar or naira, as part of its plan to modernise the financial system.
Cardoso announced that the CBN, in partnership with the Ministry of Finance and other key agencies, set up dedicated working groups to explore a viable regulatory and operational framework for stablecoin adoption in Nigeria.
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Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
