The Nigerian Securities and Exchange Commission (SEC) has issued a public warning, labeling Zugacoin and Samzuga GPT as unauthorized crypto operations. The commission stated that the promoters and issuers of these digital assets are not registered to operate within the Nigerian capital market, nor are the assets approved for public issuance.
In an alert shared via X, the Nigerian regulator said preliminary investigations revealed that both Zugacoin and Samzuga GPT are classified as “meme coins.” The commission highlighted that meme coins typically lack genuine use cases, intrinsic value or tangible projects to back them.
“Any attributed value to meme coin is usually linked to its promoters or the community effort which most often than not [is] susceptible to pump and dump schemes,” the Nigerian SEC stated.
Under these so-called pump and dump schemes, promoters of the memecoin or tokens spread false or misleading information to artificially inflate their prices. Afterward, they then sell their own holdings at the inflated value, with unsuspecting investors none the wiser. This practice inevitably leads to significant losses for investors once the promoters cease their “hyping” activities.
The SEC’s alert came a few weeks after it issued an illegal operator warning against Crypto Bridge Exchange (CBEX), which had reportedly resumed operations across Nigeria. As per reports, CBEX was demanding $200 from investors with balances above $1,000, and $100 from those with less than $1,000 before withdrawals could be processed.
However, the regulator disclosed that enforcement action has already been initiated against CBEX and its promoters following its previous unauthorized investment activities. It added that it was collaborating with relevant law enforcement agencies to properly investigate CBEX/ST Technologies International Ltd. and will take appropriate actions in line with the provisions of the Investments and Securities Act 2025.
The commission has meanwhile reminded the investing public of the importance of verifying the authenticity of any crypto, virtual or digital asset offerings. It urged investors to check the registration status of promoters and trading platforms via the commission’s dedicated portals.
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