SEC Flags Zugacoin, SamZuga GPT as Unregistered, Warns Nigerians

• The Securities and Exchange Commission (SEC) has flagged two cryptocurrencies as illegal
• The SEC alerted Nigerians, warning them not to invest in Zugacoin and SamZuga, two meme coins
• The commission said the coins are not registered and are deemed meme coins without any value

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Securities and Exchange Commission (SEC) has flagged two cryptocurrencies as not registered with the commission.

The SEC warned Nigerians that ZUGACOIN, owned by Sam Zuga, with its variants such as SZCB and SZCB2, and SAMZUGA GPT, saying they are unapproved.

Zugacoin and SamZuga GPT are illegal

The commission disclosed in a new notice stating the promoters or issuers of ZUGACOIN and SAMZUGA GPT are not licensed to operate in any capacity in the Nigerian capital market, flagging the meme coins as illegal.

The SEC noted that both coins are meme coins and have no use case, intrinsic value or tangible projects backing them.

According to the commission, the value of a meme coin is often linked to its promoters or community efforts, which can be involved in pump-and-dump strategies. 

How meme coins operate

The practice involves spreading details to drive up the price and then selling them at inflated prices, leading to a subsequent drop in price immediately the promotions stop, leading to losses for investors.

“Accordingly, the public is advised to refrain from engaging in the purchase or promotion of ZUGACOIN and SAMZUGA GPT or any of their variants as any person who invests in the scheme does so at his/her own risk,” the SEC stated.

The commission asked investing Nigerians to always verify the authenticity of cryptos and virtual assets, the registration status of their promoters, and trading platforms on its portal.

The SEC calls out other platforms

BusinessDay reports that under the new Investment and Securities Act 2025, digital assets are under the purview of the SEC, requiring virtual asset service providers and digital asset exchanges to register with the commission.

Legit.ng reported that the commission has publicly called out firms and companies operating illegally in Nigeria, alerting Nigerians against investing in spurious firms.

Early this month, the SEC warned Nigerians against investing in PUNISHER COIN, and in May warned against Property World Africa Network (PWAN), and other of its associated platforms such as PWAN MAX, and Silverkuun Investment Cooperative Society.

SEC identifies another potential Ponzi scheme

Legit.ng earlier reported that the Nigerian Securities and Exchange Commission (SEC) has alerted citizens, warning against Property World Africa Network (PWAN), also known as PWAN MAX.

The SEC described the company’s investment drive and solicitation as illegal and potentially fraudulent.

The capital market regulator disclosed in a statement that PWAN and PWAN MAX were unregistered with the commission and lacked the legal right to solicit funds from the public or operate in any capacity in the Nigerian capital market, the move followed an intelligence report on the PWAN’s investment offerings, which reportedly promised high returns and have subsequently failed to honour withdrawal requests from investors.

Source: Legit.ng