Nigerian regulator warns investors against investing in Zugacoin crypto project
Date: 2025-06-20 Author: Oliver Abernathy Categories: BUSINESS
The Nigerian Securities and Exchange Commission (SEC) has issued a warning to the public against investing in the Zugacoin and Samzuga GPT crypto tokens. According to the regulator, these projects are not registered to operate in the country's capital market and may be part of a "pump and dump" scheme. Such a fraudulent practice involves artificially increasing the value of tokens through active promotion, after which insiders sell the assets at an inflated price, and ordinary investors suffer serious losses.
The SEC statement emphasizes that memecoins often have no intrinsic value and are not used for real purposes - their value depends entirely on the marketing efforts of their creators and promoters. The regulator warns that participation in such projects is associated with high risk and it is recommended to carefully check the registration of cryptocurrency platforms on the official SEC portal before investing.
According to the new Nigerian legislation - the Investment and Securities Act of 2025 - digital assets have received the official status of securities. This means that crypto exchanges and service providers related to virtual assets are required to register and be monitored by the SEC. Failure to comply with this rule leads to official warnings and potential sanctions.
In addition to Zugacoin, this month the regulator issued a similar warning about the Punisher Coin crypto project, which also operates without the necessary license. The SEC urges investors to be careful and not to trust projects that have not undergone state registration.
In general, the Nigerian regulator pays great attention to the control of digital assets, seeking to protect the market and investors from fraudulent schemes and unjustified financial risks that arise when investing in unregistered crypto tokens and memes.
Thus, the SEC reminds that participation in such projects carries the risk of losses, and encourages users to check the legality of crypto platforms in advance.
