The Securities and Exchange Commission has warned Nigerians off ZUGACOIN (with variants like SZCB and SZCB2) and SAMZUGA GPT, flagging them as unapproved for issuance to the public.

In a new notice, the commission emphasised that the promoters or issuers of ZUGACOIN and SAMZUGA GPT are not registered to operate in any capacity in the Nigerian capital market, citing the meme coin as illegal.

It noted that both coins are meme coins. “Meme coins generally have no use case, intrinsic value or tangible projects backing them.”

Read also: SEC warns social media influencers, bloggers against promoting unregistered schemes

The value of a meme coin is often associated with its promoters or community efforts, which can sometimes be involved in pump and dump schemes. This practice involves spreading information to drive up the price of the coin and then selling it at the inflated price, leading to a subsequent drop in price once the promotion stops, resulting in losses for other 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,” SEC stated.

It further noted that people investing should always verify the authenticity of crypto/virtual or digital assets, the registration status of their promoters and trading platforms via its portal: https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/ or www.sec.gov.ng/cmos.

Read also: SEC warns Nigerians against unregistered investment platforms

Under the new Investment and Securities Act 2025, digital assets are now officially under the SEC’s regulatory scope, requiring all virtual asset service providers and digital asset exchanges to register with the commission.

In recent months, the SEC has intensified its enforcement actions, publicly calling out companies operating without proper regulatory approvals. This is consistent with its broader mandate to protect investors, ensure financial transparency, and uphold the integrity of the capital market.

Earlier this month, it issued a public warning against ‘PUNISHER COIN’ (also known as ‘SPUN’, and in May, it issued warnings against Property World Africa Network (PWAN) and its associated platform, PWAN MAX and Silverkuun Investment Cooperative Society.