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The Securities and Exchange Commission (SEC) has sounded a strong warning to the Nigerian public about two cryptocurrency products, Zugacoin and Samzuga GPT, declaring them unlicensed and unauthorised for operation in the nation’s financial markets.
In an official statement released on Wednesday, the commission said it had observed aggressive online promotions touting Zugacoin and its variants (SZCB and SZCB2), alongside Samzuga GPT, targeting unsuspecting Nigerian investors.
“The commission hereby informs the public that the promoters or issuers of Zugacoin and Samzuga GPT are not registered to operate in any capacity in the Nigerian capital market, and also Zugacoin and Samzuga GPT are not approved by the commission for issuance to the public,” the SEC emphasised.
After conducting a preliminary investigation, SEC categorised both digital assets as meme coins—typically tokens with no clear utility, intrinsic value, or substantial project backing them. The value of such coins, the commission explained, is usually driven by hype and promotional tactics, leaving investors exposed to manipulative practices.
In particular, the commission warned against falling victim to “pump-and-dump” schemes, where promoters artificially inflate the price of a coin through misleading marketing to attract buyers. Once the price peaks, promoters sell off their holdings, causing the price to collapse and leaving late investors with heavy losses.
“These coins are highly speculative and vulnerable to market manipulation,” the SEC stated.
It further cautioned Nigerians to exercise extreme caution and undertake due diligence before investing in any virtual asset.
“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 or her own risk,” the commission warned.
To protect investors, SEC also urged the public to always verify the legitimacy of cryptocurrency platforms and digital assets through the commission’s dedicated portal before committing any funds.
