The Securities and Exchange Commission has flagged an online investment platform, Tofro.com, as an unregistered and potentially fraudulent cryptocurrency trading operation.
In a public notice issued on Thursday, the commission warned Nigerians to avoid the platform, describing its activities as suspicious and indicative of a Ponzi scheme. The SEC said Tofro is not registered to operate in any capacity within the Nigerian capital market and therefore lacks the legal backing to solicit investments from the public.
According to the commission, Tofro’s mode of operation includes promising unusually high returns, relying heavily on a referral system for payouts, and failing to honour withdrawal requests—common red flags associated with Ponzi schemes.
“The commission hereby informs the public that Tofro is not registered by the commission either to solicit investments from the public or operate in any other capacity within the Nigerian capital market,” the notice read.
It added, “Investigations have revealed that Tofro’s operations exhibit the typical indicators of a fraudulent Ponzi scheme, including the promise of unusually high returns, heavy reliance on a referral system to sustain pay-outs and failure to honour withdrawal requests from subscribers.”
The commission also reminded investors to always verify the registration status of any platform through its official website before committing funds.
SEC’s Director-General, Emomotimi Agama, urged Nigerians to exercise caution when approached with high-return investment offers, especially from unlicensed platforms. “It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” he said.
The commission reiterated that anyone investing in Tofro does so at their own risk.
The PUNCH reported that the Securities and Exchange Commission has warned traders against investing in Ponzi schemes, urging them to verify any investment opportunity with the commission before committing their funds.
