The Securities and Exchange Commission (SEC) has identified a potentially fraudulent investment online platform known as Tofro.com (Tofro).
The commission issued a stern warning to Nigerians to be cautious of their tactics, which involve soliciting funds through promises of substantial returns.
SEC gave this warning in a statement released on Thursday, May 1, 2027.
In the notice, the SEC cautioned that the suspected investment platform presents itself as a cryptocurrency trading venue, emphasizing that this investment scheme is not registered with the Commission.
The SEC indicated that its investigations reveal that Tofro’s activities display the common characteristics of a deceptive Ponzi scheme, such as the promise of excessively high returns, a heavy dependence on a referral system to maintain payouts, and the inability to fulfill withdrawal requests from investors.
The Commission urged Nigerians to exercise caution when considering investments with Tofro, highlighting that any individual who invests with this entity does so at their own peril.
The notice reads, “The attention of the Securities and Exchange Commission has been drawn to the activities of an online platform known as Tofro.Com (Tofro), which holds itself out as a cryptocurrency trading platform.
“The Commission hereby informs the public that the 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.
“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.
“Accordingly, the public is strongly advised to be wary about investing with Tofro, as any person who places such investment with the entity, does so at his/her own risk.
“The Commission similarly reminds potential investors of the need to VERIFY the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.”
The Director-General of the commission, Emomotimi Agama, maintained that it is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by SEC.
