SEC warns Nigerians against suspected TOFRO Ponzi scheme, urges investment caution 

SEC says the platform exhibits characteristics of a fraudulent Ponzi scheme.

The notice cautions Nigerians against falling for deceptive investment promises and urges them to verify the legitimacy of financial platforms before committing funds.

According to the SEC, Tofro claims to operate as a cryptocurrency trading platform, yet it is not registered with the regulatory body and does not comply with Nigeria’s capital market regulations.

Based on SEC’s investigation, the platform displays classic Ponzi scheme indicators, including:

The SEC explicitly warned that anyone investing in Tofro does so at their own risk.

“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 in a statement.

“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.” 

According to the commission, 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 honor withdrawal requests from subscribers.

SEC says it 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 Commission 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.

SEC Director-General Emomotimi Agama stressed the importance of investor awareness, noting that Nigerians must avoid putting their hard-earned money into unregistered or unregulated financial schemes. He urged individuals to always verify investment platforms before committing funds to avoid financial loss.

With fraudulent schemes increasingly targeting unsuspecting investors, SEC continues to strengthen enforcement measures and educate the public on financial security. The commission advises all Nigerians to check the registration status of any investment platform via its official portal before engaging in transactions.