The Securities and Exchange Commission (SEC) has issued a public notice warning Nigerians to avoid a fraudulent cryptocurrency scheme identified as PUNISHER COIN, also referred to as $PUN. The warning follows several online advertisements promoting an unauthorized presale of the meme coin, which has not been approved by the Commission.
According to SEC, “The promoters or issuers of PUNISHER COIN are NOT REGISTERED to operate in any capacity in the Nigerian Capital Market.” The Commission further stated that $PUN is not approved for issuance to the public, and any ongoing presale is illegal.
Preliminary findings revealed that PUNISHER COIN is a meme coin, a type of crypto asset with no intrinsic value, use case, or real project backing it. SEC highlighted that such coins are typically influenced by hype created by their promoters and online communities, making them vulnerable to pump and dump schemes.
The Commission warned, “Pump and dump schemes involve promoters spreading false or misleading information to increase the coin’s price. Once the price peaks, they sell off their holdings, causing the price to crash and leading to investor losses.”
As crypto scams in Nigeria continue to rise, the SEC has urged the public to be cautious. “Anyone who invests in the scheme does so at his or her own risk,” the statement added.
To stay safe, investors are advised to verify any digital currency or virtual asset through the SEC’s official fintech portal https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/.
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