The Securities and Exchange Commission (SEC) has sounded an alarm over the unregulated promotion of digital tokens known as Zugacoin—marketed under aliases such as SZCB and SZCB2—and a related asset called Samzuga GPT. In an official advisory, the Commission cautioned Nigerian investors against engaging with these digital offerings, which it classified as high-risk.
According to the SEC, neither Zugacoin nor Samzuga GPT has secured registration or operational approval to function within the Nigerian capital market. The regulator emphasized that its initial investigations confirmed both tokens fall under the category of “meme coins”—a type of cryptocurrency typically devoid of tangible value or real-world use cases.
“Meme coins are primarily driven by social media trends and speculative interest,” the statement read. “They often lack fundamental value or utility, leaving them highly vulnerable to manipulation and speculative ‘pump and dump’ schemes.”
The Commission highlighted that in such schemes, promoters often create artificial hype around a digital asset to inflate its price before rapidly offloading their holdings. This orchestrated selloff frequently results in steep price crashes, leaving unsuspecting retail investors with significant losses.
Further reiterating its stance, the SEC stated: “The creators and promoters of Zugacoin and Samzuga GPT are not registered to operate in any capacity in Nigeria’s capital market.”
The Commission urged the investing public to exercise extreme caution and verify the regulatory status of any cryptocurrency or its promoters via its official channels. “Any individual or entity participating in these offerings does so entirely at their own risk,” it concluded.
This warning is part of the SEC’s broader crackdown on the proliferation of unregulated crypto investments in Nigeria, often marketed through flashy social media campaigns and false promises of high returns.
 has sounded an alarm over the unregulated promotion of digital tokens...){kind=link}