Securities and Exchange Commission (SEC) has issued a warning to Nigerians regarding investments in tofro.com, which is being described as an illegal investment platform that masquerades as a cryptocurrency trading website.
Gatekeepers News reports that in a notice released on Thursday, the SEC indicated that its investigations have revealed that TOFRO displays several characteristics commonly associated with Ponzi schemes.
These include the promise of exceptionally high returns, reliance on a referral system to maintain payouts, and a tendency to deny withdrawal requests from its subscribers.
The SEC has urged Nigerians to exercise caution when considering investments with TOFRO, emphasizing that individuals who choose to invest in this platform do so at their own peril.
“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,” SEC said.
“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.”
According to the notice, Emomotimi Agama, the agency’s director-general (DG), said Nigerians must understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC.
The warning comes amid growing concern over the rise of crypto-related ponzi schemes in Nigeria.
