SEC flags brand-new meme coin, PUNISHER COIN, as illegal
The Securities and Exchange Commission has flagged a brand-new meme coin, ‘PUNISHER COIN’ (also called ‘SPUN’), as prohibited and not authorized for public issuance. In a public notice on Saturday, the commission noted that promoters/issuers of the meme coin are not registered to operate in any capacity in the country’s capital market, “and also PUNISHER COIN (SPUN) is not approved by the Commission for issuance to the general public.” SEC explained that its initial investigations have revealed that PUNISHER COIN (SPUN) is a meme coin. “Meme coins generally have no use case, intrinsic worth, or tangible jobs backing them. Any attributed value to meme coin is generally linked to its promoters or the community effort which usually, more often than not, are susceptible to pump and dump schemes (a form of deceptive activity that involves promoters spreading deceptive or false information to create a buying frenzy that “pumps” up the price of a “coin’ and then “dumps” the coin by selling their own coins at the inflated price),” it said. According to the commission, once the promoters dump their coins and stop hyping the coin, the coin price generally falls, and investors lose money. It advised the public to refrain from participating in the alleged presale of the meme coin, as anyone who invests in the scheme is doing so at their own risk. It further noted that individuals investing must always verify the legitimacy of digital or crypto/virtual assets, the registration status of their promoters, and trading platforms through its website: SEC Website. Under the new Investment and Securities Act 2025, digital assets are now formally under the SEC’s regulatory purview, requiring all virtual asset providers and digital asset exchanges to register with the commission. Over recent months, the SEC has intensified its enforcement actions, publicly calling out firms operating without proper regulatory approvals. This aligns with its broader mandate to protect investors, ensure financial transparency, and uphold the integrity of the capital market. In May, SEC issued a public warning against Property World Africa Network (PWAN) and its associated platform, PWAN MAX, and Silverkuun Investment Cooperative Society.
