The Nigeria Securities and Exchange Commission (SEC Nigeria) has issued a fresh warning to the public, urging Nigerians to steer clear of ZugaCoin and Samzuga GPT, two digital asset schemes promoted by controversial cleric and entrepreneur, ArchBishop Sam Zuga.
According to the regulator, neither of the platforms is registered or approved to operate within Nigeria’s capital market.
ZugaCoin was first highlighted by BitKE back in 2022 when it was listed on the coin tracker, CoinMarketCap. Complains about traders and holders of ZugaCoin being unable to make withdrawals had already emerged at the time prompting BitKE to issue an alert regarding the coin.
Nigerian Archbishop Defends CoinMarketCap-Listed ZugaCoin After Scam Accusations
The project website indicates they have offices in 15 countries in Africa and 32 states in Nigeria, and they are achieving grassroots penetration.https://t.co/q07QEUVay8
— BitKE (@BitcoinKE) September 4, 2022
This latest public notice comes just days after SEC Nigeria issued yet another warning regarding the Punisher Coin ($PUN) which it labelled as an unregistered memecoin with no real utility or project backing with its market value driven solely by hype.
REGULATION | SEC Nigeria Flags Punisher Coin ( $PUN ) as Unregistered, Warns of Hype, Fraud, and Investor Risk @SECNigeria‘s warning follows a preliminary investigation which concluded that $PUN is a meme coin with no real utility or project backinghttps://t.co/tKEFfBMo8e pic.twitter.com/6URnPmpk0E
— BitKE (@BitcoinKE) June 19, 2025
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TL;DR
The Nigerian SEC has declared Zugacoin and Samzuga GPT illegal and unregulated.
The platforms are not licensed to operate in Nigeria and pose high financial risk.
Investors are warned to avoid these schemes and report any fraudulent activities.
The warning highlights Nigeria’s ongoing efforts to protect citizens from crypto scams.
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SEC: ZugaCoin, Samzuga GPT Are Operating Illegally
In a circular released on June 17 2025, SEC Nigeria made it explicitly clear that:
“Zugacoin and Samzuga GPT are not registered or regulated by the Commission, and their promoters are not licensed operators under the Nigerian Capital Market.”
This statement serves as a formal alert to the investing public that these projects are not backed by any legal regulatory framework in Nigeria and therefore pose a serious financial risk to participants.
The SEC also warned that the promoters of these platforms are aggressively marketing fraudulent investment schemes that promise unrealistic returns, often using religious language and charisma to gain trust.
REGULATION | Influencers in Nigeria Must Promote Only Licensed Crypto Firms, Says Revised @SECNigeria Regulations
Failure to comply could result in a fine of N10 million Naira (~$6,500) and a prison sentence of up to 3 years.https://t.co/KOQb0JUu1Q pic.twitter.com/bjRRBivvRl
— BitKE (@BitcoinKE) December 23, 2024
It emphasized that:
“Nigerian investors are advised to exercise extreme caution in dealing with any individual or organization promoting such unlicensed investment platforms.”
In particular, Sam Zuga, who often refers to himself as Africa’s first professor of digital economy, has made numerous unverified claims about the potential of ZugaCoin to replace fiat currency and become a mainstream financial instrument across Africa. These narratives, according to analysts and regulators, are misleading and exploit public trust.
ZugaCoin, launched in 2020, has previously come under scrutiny for making exaggerated claims about becoming “Africa’s equivalent of Bitcoin.” The coin’s value has plummeted from its initial hype, and many early investors have reported significant losses.
Similarly, Samzuga GPT, a more recent AI-backed crypto project, has been touted as an innovative financial solution but offers no transparency about its underlying technology, team, or business model. The SEC considers such projects to be red flags for potential scams.
SEC’s Broader Mandate to Protect Investors
This move by SEC Nigeria is part of a broader campaign to crack down on unlicensed crypto schemes, Ponzi operations, and fraudulent platforms that have proliferated in Nigeria’s digital asset space. The regulator is encouraging investors to verify any investment platform via the SEC’s official channels before committing funds.
“Participation in unregulated investment schemes exposes investors to the risk of total loss of investments,” the SEC warned.
REGULATION | ‘We Will Not Allow Unlicensed Crypto Businesses to Operate Within Our Space,’ Warns SEC Nigeria
The announcement follows the recent move on August 29 2024 by the SEC to grant two digital asset exchanges ‘Approval-in-Principle’ to begin operations under the… pic.twitter.com/bUJQbfYqv2
— BitKE (@BitcoinKE) September 12, 2024
What Investors Should Do
Verify registration of any investment scheme with the SEC via www.sec.gov.ng.
Be wary of high-return promises, especially from self-proclaimed “crypto experts” or religious figures.
Avoid platforms that lack transparency about operations, licensing, and management teams.
Report suspicious schemes to the SEC or the Nigerian Financial Intelligence Unit (NFIU).
Want to stay safe in the crypto space? Always verify, never speculate.
EXPERT OPINION | Why CBEX Will Happen Again in Nigeria, If Stakeholders Don’t Do Things Differently
In this special periscope, we highlight some major Ponzi schemes in Nigeria, why Ponzi schemes remain a plague https://t.co/uy8y37cm2X @officialEFCC @cenbank @SECNigeria pic.twitter.com/gIH8SnfLf9
— BitKE (@BitcoinKE) May 5, 2025
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