The Securities and Exchange Commission (SEC) has warned Nigerians to avoid investing in the digital token known as Shalom Coin (SHLM), citing potential fraud risks linked to its promoters and operations.
In a public notice issued Friday, the Commission said the token is being advertised as an investment opportunity on the Ethereum Blockchain, though it is not registered or approved for trading in Nigeria.
Preliminary findings revealed that the coin is being promoted across social media as a meme or community token with promises of high returns. SEC added that the smart contract of Shalom Coin includes permissions allowing its creators to alter key features such as trading rights, transaction fees, and token supply.
ALSO READ
The regulator stated that these provisions make the token’s structure highly risky and prone to manipulation.
“The promoters or issuers of Shalom Coin (SHLM) are not registered to operate in any capacity in the Nigerian capital market,” the Commission said.
Investors were warned to exercise caution and to verify the legitimacy of any cryptocurrency offering on the SEC’s official website before committing funds.
The Commission reiterated its mandate to regulate digital asset activities and protect investors from fraudulent schemes.
In 2024, SEC approved two crypto exchanges—Quidax and Busha—under its new regulatory framework, marking its first step toward formal oversight of the sector.
Director-General Emomotimi Agama said the agency will continue to enforce compliance while supporting innovation in Nigeria’s digital finance ecosystem.
