Nigeria: SEC Cautions Public Against Zugacoin and Samzuga GPT, Labels Them Unregistered Meme Coins

The Securities and Exchange Commission (SEC) has issued a public warning against investing in Zugacoin and Samzuga GPT, identifying both as unauthorised and unregistered crypto assets in the Nigerian capital market.

In an official statement released on Wednesday, the Commission expressed concern over online advertisements promoting Zugacoin and its variants — SZCB and SZCB2 — alongside Samzuga GPT, despite the fact that neither has been approved or registered for public offering in Nigeria.

“The promoters or issuers of Zugacoin and Samzuga GPT are not registered to operate in any capacity within the Nigerian capital market. These digital assets have not received approval from the Commission for issuance to the investing public,” the SEC stated.

According to the Commission, preliminary investigations classify both digital assets as meme coins — a category of tokens typically lacking any intrinsic value, utility, or backing by tangible projects.

The SEC warned that:

“Meme coins often derive perceived value from the activities of promoters or community hype, making them highly vulnerable to pump-and-dump schemes. These schemes involve artificially inflating the price of a coin through misleading promotion, followed by mass sell-offs by insiders, leaving unsuspecting investors at a loss once the hype dissipates.”

In light of these risks, the Commission strongly advised the public to desist from purchasing, trading, or promoting Zugacoin, Samzuga GPT, or any related digital variants.

“Investors engaging with such schemes do so entirely at their own risk,” the statement added.

The SEC reiterated its commitment to investor protection and urged individuals to verify the regulatory status of any crypto assets, promoters, or trading platforms before committing funds.

“We encourage the investing public to exercise due diligence and consult the Commission’s website or official channels to confirm whether any digital or virtual asset is duly registered,” the SEC advised.

This warning aligns with the Commission’s broader efforts to mitigate risks in Nigeria’s fast-evolving digital asset landscape and safeguard retail investors from speculative or fraudulent schemes.