Cryptocurrency: SEC Warns Nigerians Against Illicit Investment in ‘Punisher Coin’ ($PUN) Presale
Nigeria’s Securities and Exchange Commission has delivered a strong cautionary message to citizens concerning the illicit promotion of a digital currency known as Punisher Coin or $PUN.
In a statement released on its website, the regulatory body revealed that this cryptocurrency is being marketed across multiple internet channels without proper authorisation or registration within Nigeria’s financial system.
“The promoters or issuers of ‘Punisher Coin’ aka ‘$PUN’ are NOT REGISTERED to operate in any capacity in the Nigerian Capital Market,” the SEC stated.
Initial research conducted by the regulatory authority indicates that $PUN falls under the meme coin classification—a type of cryptocurrency notorious for lacking substantial utility, real-world value, or legitimate underlying ventures.
These digital tokens typically derive their worth from publicity campaigns, social media momentum, and marketing efforts, creating conditions that make them vulnerable to price manipulation tactics.
The regulator emphasised that meme coins such as $PUN commonly feature in fraudulent pump and dump operations.
Such schemes typically involve organizers who deliberately inflate coin prices using deceptive marketing and false promises, then liquidate their positions at peak values, ultimately causing significant financial harm to ordinary investors when market enthusiasm wanes.
“Any person who invests in the scheme does so at his/her own risk,” the SEC warned.
This guidance represents part of the Commission’s comprehensive strategy to shield investors from deceptive and unregistered investment schemes proliferating in Nigeria’s expanding cryptocurrency sector. The authority encouraged citizens to confirm the legitimacy of any investment opportunity, particularly those involving digital currencies, by consulting official regulatory resources.
The recent warning emerges as concerns mount over the spread of questionable digital currencies and trading platforms functioning beyond established regulatory boundaries.
SEC Director-General Emomotimi Agama recently delivered strong remarks to Nigerian entertainment figures, urging them to cease endorsing unauthorised meme coins, referencing provisions within the Investments and Securities Act 2025, which President Bola Tinubu recently enacted.
Agama explained that this legislation introduces comprehensive guidelines and requirements for digital asset operations, including mandatory registration procedures designed to enhance transparency and build investor confidence.
He noted that registration empowers the SEC to combat fraudulent activities, including Ponzi schemes, manipulative tokens, and unlicensed trading platforms, thereby fostering a more secure investment climate.
“It is important that even for celebrities, we must be cautious about what we do. Becoming influencers or introducing meme coins that do not mean well for the generality of Nigerians is not going to be tolerated,” Agama warned.
Previously, the Commission released advisory notices highlighting substantial investment risks connected to meme coins, including those associated with Afrobeat artist David Adeleke, widely recognised as Davido.
