The Securities and Exchange Commission (SEC) has issued a public warning against two digital assets—Zugacoin (including its variants SZCB and SZCB2) and Samzuga GPT—declaring them unlicensed and unauthorized for operation or trading within Nigeria’s capital market.
In a statement released on Wednesday, the commission emphasized that the issuers and promoters of these cryptocurrencies are not registered to operate in any capacity and have not received SEC approval for public issuance or investment activities.
SEC Labels Zugacoin and Samzuga GPT as Meme Coins
Following an internal review, SEC classified both Zugacoin and Samzuga GPT as meme coins—a class of digital tokens typically lacking clear utility, intrinsic value, or sustainable projects behind them. Their value is often driven by online hype, social media trends, and influencer promotions, rather than any real-world application or financial fundamentals.
“These coins pose significant risks to investors due to their speculative nature,” the commission stated.
The SEC further warned of the potential for pump-and-dump schemes, where asset promoters artificially inflate coin prices with exaggerated claims, only to dump their holdings once the price peaks, causing massive losses for unsuspecting investors.
Public Advisory: Invest at Your Own Risk
The SEC urged the public to steer clear of any transactions involving Zugacoin, Samzuga GPT, or their variants, warning that any participation is entirely at the investor’s own risk.
“The public is strongly advised to refrain from purchasing or promoting Zugacoin and Samzuga GPT. These are not regulated products, and their promoters have no legal standing in Nigeria’s capital market,” the commission stated.
To protect against fraud and financial loss, Nigerians are encouraged to verify the registration status of any crypto product or service via the SEC’s official digital assets verification portal before investing.
A Broader Crypto Regulatory Push
This announcement aligns with the SEC’s ongoing efforts to clean up Nigeria’s digital finance ecosystem. It comes shortly after the commission introduced its “Crypto Smart, Nigeria Strong” initiative, a regulatory campaign aimed at stabilizing the virtual assets space and ensuring only approved and compliant crypto offerings reach the public.
This move highlights the SEC’s commitment to investor protection and to curbing the growing trend of high-risk, unregulated digital assets circulating in the country.
