The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians about a suspected fraudulent investment platform, TOFRO.COM (Tofro), which presents itself as a cryptocurrency trading platform. The SEC cautioned the public against falling for the platform’s deceptive tactics designed to deceive people into investing money by promising unusually high returns.
In a notice issued on Thursday, the SEC clarified that Tofro is not registered with the Commission and is operating illegally. The platform’s activities have raised significant concerns, with the SEC’s investigations revealing clear signs of a Ponzi scheme.
“Tofro is not registered with the SEC to solicit investments or operate within Nigeria’s capital market,” the SEC’s notice stated. The Commission outlined that the platform’s promise of high returns and its heavy reliance on a referral system to pay out previous investors are typical characteristics of fraudulent investment schemes. Furthermore, the platform has failed to honour withdrawal requests from its subscribers, which is another red flag of potential fraud.
The SEC warned that any person investing money with Tofro does so at their own risk. The notice strongly advised the public to avoid engaging with such platforms and to be vigilant when considering investment opportunities.
The warning comes after several reports of Nigerians being lured into high-risk investments promising fast and substantial profits. These schemes often collapse after attracting large sums of money, leaving investors with little to no recourse.
In its advisory, the SEC urged Nigerians to verify the registration status of any investment platform they are considering by visiting the Commission’s official portal at [www.sec.gov.ng/cmos](http://www.sec.gov.ng/cmos).
Director-General of the SEC, Emomotimi Agama, emphasized the importance of protecting hard-earned money by investing only in platforms that are registered and regulated by the Commission. He reminded the public that the SEC’s role is to safeguard investors from fraudulent schemes and that verifying an investment platform’s legitimacy is crucial before committing funds.
“This is a critical issue,” Agama said. “People need to understand the dangers of investing in unregistered ventures. Such investments are high-risk, and the likelihood of losing money is very high.”
The SEC’s ongoing efforts to identify and shut down illegal investment platforms are part of its broader mandate to maintain integrity and protect investors in Nigeria’s capital market. The Commission has continuously warned Nigerians to be cautious of online platforms that promise high returns with little or no risk and has urged investors to seek verified, legal investment opportunities.
As Nigeria faces a growing number of such fraudulent schemes, the SEC’s warning is a timely reminder for citizens to exercise caution and verify the legitimacy of any platform before investing their funds.
