SEC Nigeria Issues Warning on Shalom Coin (SHLM) Amid Rising Crypto Scam Concerns
The Securities and Exchange Commission (SEC) Nigeria has cautioned the public against investing in a new digital token known as Shalom Coin (SHLM), warning that it poses significant fraud risks.
In a disclaimer released on Friday, the regulator revealed that the crypto token is being marketed as an investment opportunity supposedly built on the Ethereum blockchain as an ERC-20 token.
“The attention of the Commission has been drawn to the activities of cryptocurrency promoters advertising ‘Shalom Coin (SHLM)’ as an investment opportunity,” SEC said.
Shalom Coin Promoted as Meme Token With Speculative Investment Claims
According to the SEC’s preliminary investigation, Shalom Coin (SHLM) is being promoted across social media and online communities as a “meme coin” or community token with claims of high potential returns.
The Commission also discovered that the token’s smart contract gives its issuer the ability to alter key parameters such as transaction fees, trading permissions, and the total supply of tokens — a red flag for potential manipulation.
“These features make the risk of fraudulent activity extremely high,” SEC warned.
SEC Confirms Shalom Coin and Its Promoters Are Not Registered
The regulator further disclosed that the promoters and issuers of Shalom Coin are not registered or licensed to operate in any capacity within the Nigerian capital market.
As a result, Shalom Coin (SHLM) has not been approved for issuance, trading, or public offering in Nigeria.
“Investors should exercise extreme caution. Anyone who invests in unregistered digital assets like Shalom Coin does so entirely at their own risk,” the Commission stated.
SEC Advises Investors to Verify Digital Assets Before Investing
The SEC advised Nigerians to always verify the authenticity of any crypto asset, its promoters, and trading platforms through the official SEC website — www.sec.gov.ng/cmos — before participating in any digital asset investment.
This warning forms part of the Commission’s broader effort to combat fraudulent crypto schemes and protect investors from misleading investment opportunities.
SEC Reinforces Regulatory Oversight of Nigeria’s Crypto Market
The latest development follows SEC’s ongoing enforcement drive against unregulated digital currency activities in Nigeria.
In 2024, SEC Director-General Dr. Emomotimi Agama reaffirmed the Commission’s dedication to investor protection and maintaining market integrity.
That same year, the SEC granted approval-in-principle to two regulated cryptocurrency exchanges — Quidax and Busha — the first platforms to operate under Nigeria’s official crypto regulatory framework.
Agama also disclosed that while the SEC continues to receive multiple applications from crypto exchanges, only those that meet strict compliance standards would be approved to operate.
“We support innovation but remain firm on enforcing transparency and accountability in Nigeria’s digital asset ecosystem,” Agama emphasized.
Final Takeaway: Stay Alert to Crypto Investment Scams
With the rise of crypto scams and unregulated tokens, the SEC’s latest warning on Shalom Coin (SHLM) serves as a reminder for investors to be cautious and conduct proper due diligence.
Always confirm the registration status of any crypto asset or exchange before investing — as unverified digital tokens can lead to financial loss and fraud exposure.
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