SEC declares new meme token Illegal, warns public against investing

 The Securities and Exchange Commission (SEC) has issued a public warning against PUNISHER COIN (also known as SPUN), labeling the newly launched meme coin as illegal and unapproved for public investment in Nigeria.

In a statement released on Saturday, the SEC emphasized that the promoters and issuers of the coin are not registered to operate within the Nigerian capital market. The commission clarified that SPUN has not received the necessary regulatory approvals for public offering or sale.

“Preliminary findings indicate that PUNISHER COIN (SPUN) is a meme coin,” the SEC stated. “Meme coins typically lack intrinsic value, real-world use cases, or any substantive project backing. Their value is often driven by online hype or community interest, making them highly vulnerable to pump-and-dump schemes.”

The Commission explained that such schemes involve artificially inflating the value of a coin through misleading promotion, followed by a mass sell-off by the creators or early holders, leaving unsuspecting investors with worthless tokens.

Investors have been strongly advised to avoid participating in any presale or trading activities involving SPUN. “Anyone investing in PUNISHER COIN does so at their own risk,” the SEC cautioned.

The Commission also urged the public to verify the legitimacy of any digital asset or platform by checking the registration status of promoters and exchanges via its official portal: https://home.sec.gov.ng/fintech-and-innovation-hub-finpert/registered-fintech-operators/

Under Nigeria’s newly enacted Investment and Securities Act 2025, all digital asset issuers, exchanges, and virtual asset service providers are required to register with the SEC. This move places the crypto space firmly under the Commission’s regulatory oversight.

The action against PUNISHER COIN follows a series of enforcement moves by the SEC aimed at curbing unlicensed financial activities and protecting retail investors. In May, the commission issued a similar warning against Property World Africa Network (PWAN), including its platforms PWAN MAX and Silverkuun Investment Cooperative Society, for operating without regulatory clearance.

The SEC reaffirmed its commitment to maintaining market integrity, enhancing transparency, and protecting investors from fraudulent schemes in the fast-evolving digital asset space.