Suspicious cryptocurrency transactions in West Africa hit $2.1bn in 2024, prompting SEC’s Agama to call for unified regulation and AI-based blockchain monitoring

Suspicious cryptocurrency transactions in West Africa have surged to an alarming $2.1 billion in 2024, according to the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA).

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The revelation came during the West Africa Compliance Summit held in Praia, Cape Verde, where the Director-General of Nigeria’s Securities and Exchange Commission (SEC), Emomotimi Agama, sounded the alarm on the growing exploitation of virtual assets by criminal networks and terror groups.

“DeFi rug pulls continue to defraud unsuspecting users. GIABA reported \$2.1bn in suspicious crypto-linked transactions in West Africa in 2024,” Agama stated.

He noted that suspicious cryptocurrency transactions in West Africa are increasingly tied to fraudulent schemes involving privacy coins, unlicensed exchanges, and artificial price crashes.

These activities are not only defrauding investors but also threatening financial security in the region.

Agama stressed that regulatory frameworks across West African nations must be harmonized to counter crypto-related financial crimes.

“A trader banned in Nigeria simply relocates to Ghana. ECOWAS must adopt a Unified VASP Licensing System,” he urged.

In response to rising threats, Nigeria’s SEC plans to deploy AI-powered blockchain surveillance tools to trace illicit activity and ensure consumer protection.

Agama emphasized the urgent need for enhanced digital asset monitoring across borders.

He also highlighted the launch of a Ponzi scheme awareness campaign, following the collapse of the CBEX scheme that defrauded thousands.

The campaign has been rolled out in Abuja and Lagos, with nationwide expansion underway.

While the adoption of digital assets continues to grow, experts warn that unchecked growth without strong oversight leaves room for exploitation by malicious actors.

“Regulation is not optional—it’s an imperative,” Agama concluded.

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As cryptocurrency use accelerates in West Africa, stakeholders are calling for proactive, tech-driven, and collaborative solutions to address emerging threats and protect consumers.