The Securities and Exchange Commission (SEC) has issued a stern warning to the Nigerian public regarding two controversial cryptocurrency offerings—Zugacoin and Samzuga GPT. In an official statement released on Wednesday, the commission declared both digital assets unauthorized and unlicensed for operation within Nigeria’s capital markets.
According to the SEC, it has observed a surge in aggressive online marketing of Zugacoin and its variants (SZCB and SZCB2), alongside Samzuga GPT, all targeted at unsuspecting Nigerian investors. The commission emphasized 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.”
Following a preliminary investigation, the SEC classified both Zugacoin and Samzuga GPT as meme coins—a category of tokens often created without clear utility, intrinsic value, or substantial backing. The commission explained that such assets usually derive their perceived value from hype and speculative promotion, rather than solid fundamentals.
Of particular concern, the SEC warned Nigerians against falling prey to “pump-and-dump” schemes, where promoters artificially drive up the price of a token through deceptive marketing, only to sell off their holdings at a profit—leaving retail investors with significant losses.
Investors are advised to exercise extreme caution, verify the regulatory status of all digital assets and investment products, and avoid schemes that promise high returns with minimal risk.
