SEC Cautions Nigerians Against Investing in ZUGACOIN, SAMZUGA GPT

Eric Patrick

The Securities and Exchange Commission (SEC) has issued a public warning against investing in or promoting the digital assets ZUGACOIN — including its variants SZCB and SZCB2 — and SAMZUGA GPT.

In a statement posted on its official X (Formerly Twitter) handle, the Commission stated that neither the promoters nor the issuers of these assets are registered or authorized to operate within Nigeria’s capital market.

It further clarified that the two crypto assets have not been approved for public offering.

According to the SEC, preliminary investigations have revealed that both ZUGACOIN and SAMZUGA GPT are classified as meme coins digital tokens that typically lack intrinsic value, practical utility, or backing from a tangible project.

The Commission warned that the value of such coins is often driven by hype or aggressive promotion, making them vulnerable to fraudulent practices such as “pump and dump” schemes.

In these schemes, promoters artificially inflate the price of an asset through misleading marketing, then sell off their holdings at the peak, causing the price to crash and leaving investors with heavy losses.

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The SEC’s statement reads in part:

“The attention of the Securities and Exchange Commission has been drawn to online publications promoting unauthorized crypto coins known as ZUGACOIN (and its variants SZCB and SZCB2) and SAMZUGA GPT.

The public is hereby informed that the promoters or issuers of these assets are not registered to operate in any capacity in the Nigerian capital market.

These digital assets have not been approved for issuance.

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