SEC issues strong warning to Nigerians against investing in unregistered Meme Coin $PUN and other unauthorized platforms

The Securities and Exchange Commission (SEC) has issued a firm warning to Nigerians about the risks of investing in the unregistered meme coin known as Punisher Coin, or $PUN, amid growing concerns over fraudulent digital asset schemes in the country.

In a public notice released on its official website, the SEC clarified that the promoters of $PUN are not registered or authorized to operate within Nigeria’s capital market. Despite this, the coin continues to be aggressively marketed across various online platforms.

“Meme coins like $PUN typically lack real utility or intrinsic value, and their prices are often driven by hype and social media buzz,” the SEC explained. “Such coins are highly susceptible to market manipulation, including pump and dump schemes, where promoters artificially inflate prices before selling off their holdings, leaving ordinary investors with significant losses.”

The Commission urged Nigerians to exercise extreme caution and to verify the registration status of any digital asset or investment opportunity through official SEC channels before investing.

This alert comes as part of the SEC’s broader efforts to protect investors from unregulated and potentially fraudulent investment schemes. The Commission also highlighted recent unauthorized investment platforms such as Risevest Technologies Limited and Stecs Multipurpose Cooperative Society, which have similarly not received SEC approval to operate in Nigeria.

Emomotimi Agama, the SEC Director-General, also issued a stern message to Nigerian celebrities, warning them against endorsing unregistered meme coins. “The new Investments and Securities Act 2025 sets clear rules for digital asset platforms to promote transparency and investor protection. Celebrities must be cautious about the products they promote, as introducing unregistered coins can harm the public and will not be tolerated,” Agama said.

Investors are reminded that participation in unregistered schemes is at their own risk, and the SEC continues to monitor and take enforcement actions against fraudulent operators to safeguard the Nigerian investment landscape.