Securities and Exchange Commission (SEC) has declared Zugacoin and Samzuga GPT—along with their variants SZCB and SZCB2—as unlicensed and unauthorized to operate within Nigeria’s capital market.
This is in a decisive move to protect investors from emerging threats within the digital asset space.
In an official statement issued on Wednesday, the Commission warned that these cryptocurrency products are being falsely promoted online without any regulatory approval or valid operational credentials.
“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 cautioned.
Following preliminary investigations, the Commission classified both Zugacoin and Samzuga GPT as meme coins a category of crypto tokens often devoid of real-world utility, tangible backing, or intrinsic value.
“Meme coins derive their value largely from online hype and community speculation,” the SEC explained, adding that such assets are highly susceptible to “pump-and-dump” manipulation schemes designed to deceive retail investors.
In these schemes, promoters artificially inflate the value of a digital token through exaggerated or misleading marketing, luring investors into a price rally.
Once the price peaks, the initial promoters exit, triggering a value collapse that leaves ordinary investors with heavy losses.
Reinforcing its investor protection mandate, the SEC urged the Nigerian public to exercise caution when engaging with digital assets and to avoid unregulated cryptocurrency offerings.
“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 stated.
The SEC also encouraged prospective investors to verify the regulatory status of any crypto platform or asset via its dedicated verification portal before committing funds.
This latest development underscores the SEC’s intensifying oversight of Nigeria’s crypto landscape, particularly as the country grapples with the growing prevalence of unregistered virtual asset schemes targeting unsuspecting investors.
As global interest in digital currencies surges, Nigerian regulators are keen to strike a balance between innovation and investor protection, especially amid reports of rising fraud, volatility, and misinformation in the crypto space.
For Zugacoin and Samzuga GPT, the SEC’s message is unequivocal: without regulatory legitimacy, there is no place for them in Nigeria’s financial markets.
