The Securities and Exchange Commission (SEC) Nigeria has issued a strong warning to the public against investing in a digital token known as “Shalom Coin (SHLM)”, citing serious concerns about potential fraud and unregulated activity.
In a statement released on Friday, October 17, 2025, the SEC said it had received reports about individuals and groups promoting Shalom Coin as a lucrative investment allegedly issued on the Ethereum Blockchain as an ERC-20 token.
“The attention of the Securities and Exchange Commission, Nigeria, has been drawn to the activities of certain cryptocurrency promoters advertising a digital token known as ‘Shalom Coin (SHLM)’ as an investment opportunity purportedly issued on the Ethereum Blockchain,” the statement read.
Findings Raise Red Flags
According to the SEC’s preliminary investigation, Shalom Coin is being heavily marketed across various social media and online platforms as a “meme coin” or community token, with exaggerated claims of high returns on investment.
Further analysis revealed that the token’s smart contract contains concerning features that allow its creator to alter trading permissions, transaction fees, and even total token supply—functions that could be easily exploited to defraud investors.
The Commission described the coin’s structure and promotional methods as “highly suspicious”, warning that such setups often evolve into crypto scams or pump-and-dump schemes.
No Authorization or Registration
The SEC made it clear that neither the promoters nor the issuers of Shalom Coin are registered or licensed to operate within the Nigerian capital market.
“Consequently, ‘Shalom Coin (SHLM)’ is not approved by the Commission for issuance, trading, or offering to the investing public in Nigeria,” the statement emphasized.
Investors were urged to exercise extreme caution and avoid engaging with Shalom Coin or similar unregistered digital assets. The SEC reiterated that anyone who invests in such offerings does so entirely at their own risk.
How to Verify Legitimate Investments
To protect themselves from fraudulent schemes, the SEC advised the public to verify the authenticity of any digital asset, its promoters, or trading platforms by visiting the Commission’s official website: www.sec.gov.ng/cmos.
The regulator also encouraged investors to check that all digital asset platforms are properly licensed and comply with Nigeria’s capital market regulations before making any commitments.
SEC’s Broader Efforts to Regulate Crypto in Nigeria
This warning forms part of the SEC’s wider initiative to clamp down on unregistered crypto operators and safeguard Nigerian investors from scams.
In 2024, SEC Director-General Dr. Emomotimi Agama reaffirmed the Commission’s commitment to protecting investors while supporting responsible innovation in the fintech and blockchain space.
That same year, SEC granted approval-in-principle to two licensed crypto exchanges—Quidax and Busha—making them the first officially regulated platforms in the country.
Agama noted that several applications from other crypto exchanges were still under review and emphasized that only those meeting strict regulatory standards would be approved.
He also cautioned that while the Commission supports digital innovation, it will not tolerate misleading promotions or fraudulent activities that put investors and the economy at risk.
“Innovation must operate within the boundaries of law and transparency,” Agama said, reaffirming the SEC’s mission to maintain a safe, trustworthy, and well-regulated financial ecosystem in Nigeria.
