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•Warns Nigerians
The Securities and Exchange Commission (SEC) has issued a clear warning to the public over the operations of TOFRO.COM (Tofro), an online cryptocurrency trading platform, describing it as a suspected Ponzi scheme and cautioning Nigerians against investing in it.
In a statement released by the Commission, the SEC said Tofro is not registered to operate within the Nigerian capital market and is therefore not authorised to solicit investments from the public.
“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 statement read.
“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 regulatory body said its investigations revealed that Tofro exhibits characteristics typical of fraudulent Ponzi schemes.
These include the promise of unusually high returns with little or no risk, a business model heavily dependent on referrals to sustain payouts, and a persistent failure to honour investors’ withdrawal requests.
“Investigations have revealed that Tofro’s operations exhibit the typical indicators of a fraudulent Ponzi scheme,” the SEC noted.
The Commission warned that any person who invests in Tofro does so entirely at their own risk. “SEC strongly advises the public 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 statement added.
SEC’s Director-General, Emomotimi Agama, highlighted the need for increased investor awareness and urged Nigerians to avoid placing their money in unregistered and unregulated financial platforms.
He stressed the importance of verifying the regulatory status of any investment company before engaging in financial transactions.
“Nigerians must avoid putting their hard-earned money into unregistered or unregulated financial schemes,” he said.
As part of its wider effort to protect the investing public, the SEC reiterated its commitment to enforcing regulations and educating citizens on financial safety.
The Commission also encouraged Nigerians to confirm the registration status of any investment platform by visiting its official website.
Meanwhile, a review of TOFRO.COM shows that the platform, which refers to itself as ToFro Exchange Global Professional Station, claims to be an “innovative digital asset trading platform” serving professional users worldwide.
It says it offers more than 40 types of digital asset trading and investment services and claims to be headquartered in the United States, operated by the ToFro Exchange Global Professional Station team.
These claims, however, have not been verified by the SEC, and the platform remains unregistered under Nigerian capital market regulations.
