REGULATION | SEC Nigeria Flags Punisher Coin ($PUN) as Unregistered, Warns of Hype, Fraud, and Investor Risk

As retail interest in meme coins continues to surge, Nigeria’s Securities and Exchange Commission (SEC) has issued a stark warning to the public: avoid Punisher Coin ($PUN), a speculative digital asset the regulator says is unregistered, lacks intrinsic value, and poses a high risk of fraud.

“Promoters or issuers of $PUN are not registered to operate in any capacity in the Nigerian Capital Market,” the SEC stated in its June 2025 notice.

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TL;DR

• Nigeria’s SEC warns against Punisher Coin ($PUN), calling it unregistered and risky.
• $PUN is a meme coin with no utility, backed only by online hype and prone to pump-and-dump tactics.
• Investors are urged not to participate in its presale and to verify all digital assets with the SEC.
• The move continues the SEC’s crackdowns on unauthorized crypto schemes in Nigeria.
• Regulatory oversight is tightening post-2023, with new licensing rules for VASPs in place.

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Why SEC Nigeria Is Sounding the Alarm

The regulator’s warning follows a preliminary investigation which concluded that:

• $PUN is a meme coin with no real utility or project backing, and
• Its market value is driven solely by hype, orchestrated by online communities and self-interested promoters.

According to the SEC, Punisher Coin exhibits all the hallmarks of a “pump-and-dump” scheme — where early backers aggressively promote a token to inflate its price, then sell off their holdings at the peak, leaving unsuspecting retail investors with heavy losses once the hype collapses.

This is not the first time Nigeria’s SEC has moved to protect retail investors from crypto schemes. Since 2021, the Commission has repeatedly warned the public against engaging with platforms and projects that:

• Lack registration or licensing in Nigeria;
• Offer unrealistic investment returns; or
• Promote anonymous, high-risk digital tokens without clear disclosures.

In May 2024, for example, the SEC issued a similar notice against “FinAfrica Investment Ltd” and “Chiji14xchange,” two platforms that were operating unauthorized digital asset schemes under the guise of investment services.

Following the lifting of Nigeria’s crypto ban by the Central Bank in December 2023, the SEC has stepped up its oversight of digital assets, particularly under its new framework for Virtual Asset Service Providers (VASPs). The regulator now requires all promoters of crypto-related products to register under its digital asset rules, or face enforcement action.

“Anyone who invests in Punisher Coin does so at their own risk,” the SEC reiterated.

The Commission strongly advises the Nigerian public to:

• Avoid participating in the ongoing presale of Punisher Coin;
• Verify the registration status of any crypto promoter or project using the SEC’s dedicated portal;
• Be skeptical of meme coins and tokens that rely purely on social media promotion without clear, verifiable value propositions.

Meme coins like Dogecoin, Shiba Inu, and now $PUN have captured the imagination of young, tech-savvy investors worldwide, offering dreams of instant wealth through viral trends. However, the lack of fundamentals behind many of these assets makes them easy tools for manipulation and fraud – especially in emerging markets like Nigeria, where financial literacy gaps and limited enforcement capacity persist.

The SEC Nigeria’s firm stance is part of a broader effort to build a safer, more transparent capital market, as Nigeria grapples with balancing fintech innovation and consumer protection.

With an estimated over 33 million crypto users as of 2024, Nigeria remains one of the largest crypto markets globally – but one where regulation is still evolving.

The SEC’s approach suggests a clear red line: unregistered projects promoting speculative assets will not be tolerated.

Stay tuned to BitKE for deeper insights into the Nigerian crypto space.

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