Securities and Exchange Commission
(SEC) has warned Nigerians against investing in tofro.com, an alleged illegal investment platform posing as a cryptocurrency trading website.
Gatekeepers News reports that the commission noted that Tofro is not registered or authorized to solicit investments or conduct any form of capital market activity in Nigeria.
SEC in a notice on Thursday, revealed its investigations showed that TOFRO’s operations exhibit indicators of a Ponzi scheme including promises of unusually high returns, dependence on a referral system to sustain payouts, and failure to honour withdrawal requests from subscribers.
The commission advised Nigerians to be
wary about investing with Tofro, noting that any person who invests with the entity does so at their own risk.
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 Toro 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.”
Emomotimi Agama, director-general (DG) of SEC emphasised the need for Nigerians to understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC.
Recall that it was reported in April, that investors in Crypto Bridge Exchange (CBEX), were unable to withdraw funds. SEC later confirmed that CBEX was not registered with the commission.
