The Securities and Exchange Commission (SEC) has issued a public warning against the activities of promoters behind digital assets known as Zugacoin—marketed under variants such as SZCB and SZCB2—and Samzuga GPT, stating that neither the issuers nor the coins are registered or authorised to operate within Nigeria’s capital market.

In a statement released by the Commission, it described both Zugacoin and Samzuga GPT as meme coins, a category of crypto assets that typically lack real utility, tangible backing, or intrinsic value.

“Preliminary investigations revealed that ZUGAGOIN and SAMZUGA GPT are Meme coins,” the statement said, adding that the value of such coins is often driven solely by hype from promoters and online communities.

The SEC highlighted that these types of digital assets are susceptible to market manipulation tactics commonly referred to as pump and dump schemes.

“Preliminary investigations revealed that ZUGAGOIN and SAMZUGA GPT are Meme coins. Meme coins generally have no use case, intrinsic value or tangible projects backing them,” the statement read.

“Any attributed value to meme coin is usually linked to its promoters or the community effort which most often than not are susceptible to pump and dump schemes (a form of fraudulent activity that involves promoters spreading false or misleading information to create a buying frenzy that “pumps” up the price of a coin and then “dumps” the coin by
selling their own coins at the inflated price. Once the promoters dump their coins and stop hyping the coin, the coin price typically falls and investors lose money).”

The Commission stressed that “the promoters or issuers of ZUGAGOIN and SAMZUGA GPT are NOT REGISTERED to operate in any capacity in the Nigerian Capital Market.” As a result, it advised Nigerians to steer clear of engaging with or investing in either the coins or their variants.

“Any person who invests in the scheme does so at his/her own risk,” the Commission warned.

In addition, the SEC reminded the public of the importance of verifying the regulatory status of any virtual or digital asset and their promoters before committing funds. Verification can be conducted through its official website or the fintech innovation hub portal.

The regulator’s advisory follows increasing concerns over the proliferation of unregulated crypto schemes targeting retail investors in Nigeria through social media campaigns and high-return promises.