The Securities and Exchange Commission (SEC) has issued a stark warning to the public regarding the unauthorized promotion and trading of ZUGACOIN and SAMZUGA GPT, crypto coins, including their variants such as SZCB and SZCB2. According to the regulatory body, these digital assets are not registered, approved, or recognized in any capacity within Nigeria’s capital market.
The Commission disclosed that these tokens are classified as meme coins, which typically lack intrinsic value, practical use cases, or real economic backing. Preliminary investigations revealed that any perceived value of ZUGACOIN and SAMZUGA GPT is largely speculative, driven by hype, social media momentum, and the activities of their promoters.
Meme coins are often vulnerable to pump and dump schemes—fraudulent tactics in which prices are artificially inflated by misleading hype before being sold off by insiders. Once the price crashes, investors are left holding worthless assets, resulting in significant financial losses.
In its official statement, the SEC clarified that the promoters of these coins are not licensed to operate or solicit investment from the public. It also emphasized that these schemes have not received regulatory approval for issuance or trading within Nigeria.
The Commission strongly advised Nigerians and the investing public to avoid buying, promoting, or transacting in ZUGACOIN, SAMZUGA GPT, or any of their derivatives. It warned that individuals who engage in such schemes do so entirely at their own risk, without legal protection or regulatory oversight.
To safeguard against crypto scams, the SEC urged the public to verify the registration status of any digital asset, trading platform, or crypto promoter through its official fintech registration portal or the Fintech and Innovation Hub.
This alert comes amid growing concerns over the proliferation of unregulated cryptocurrency offerings in Nigeria, particularly as the country sees a surge in crypto adoption driven by inflation and currency volatility.
With this announcement, the SEC reiterates its commitment to protecting investors and maintaining market integrity by cracking down on fraudulent schemes and unauthorized financial operators within the rapidly evolving crypto space.
Investors are reminded to always conduct due diligence, verify regulatory status, and remain vigilant against high-risk virtual asset schemes masquerading as legitimate opportunities.
