The Nigerian Securities and Exchange Commission (SEC) has issued a stern warning to the public against investing in two cryptocurrency products, Zugacoin and Samzuga GPT, highlighting that these digital assets are not licensed or approved to operate within Nigeria’s financial market.
In an official statement released on Wednesday, the SEC revealed that it had identified online promotions marketing Zugacoin, including its variants SZCB and SZCB2, alongside Samzuga GPT. The commission clarified that none of these assets have received regulatory approval for issuance or trading in Nigeria.
“The promoters or issuers of Zugacoin and Samzuga GPT are not registered to operate in any capacity in the Nigerian capital market,” the SEC emphasized. “These coins are not approved by the commission for public issuance.”
Following a preliminary investigation, the SEC classified both Zugacoin and Samzuga GPT as meme coins—digital currencies typically lacking a clear use case, intrinsic value, or a solid project foundation. Instead, their value often depends on community hype and the influence of promoters, making them highly vulnerable to manipulative market practices.
The commission also warned of the risks associated with “pump-and-dump” schemes, where promoters artificially inflate the price of a coin through misleading marketing to lure investors. Once prices peak, the promoters sell off their holdings, causing the value to plummet and leaving many investors with significant losses.
To protect Nigerians from such fraudulent schemes, the SEC urged the public to exercise caution and conduct thorough due diligence before investing in any virtual assets. It advised investors to verify the legitimacy of cryptocurrency platforms and digital assets through the SEC’s dedicated portal.
“Investing in unapproved crypto assets like Zugacoin and Samzuga GPT is done at one’s own risk,” the commission warned.
This announcement follows similar warnings issued recently against other unlicensed platforms such as Risevest, Stecs, and the meme coin $PUN. The SEC continues to strengthen its regulatory oversight to safeguard investors and maintain the integrity of Nigeria’s capital market.
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