The Securities and Exchange Commission (SEC) has issued a public warning to Nigerians against investing in tofro.com, a self-acclaimed cryptocurrency platform.
The SEC revealed this in a statement published on its website on Wednesday. The Commission emphasised that Tofro is not registered with the Commission and does not have the regulatory approval to operate in any capacity within the Nigerian capital market.
According to an investigation by the SEC, the platform exhibits the typical characteristics of a fraudulent Ponzi scheme, promising unrealistic returns on investment, heavily relying on referrals to sustain payouts, and failing to honour withdrawal requests from subscribers.
The statement read:
“Investigations have revealed that Tofro’s operations exhibit the typical indicators of a 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 SEC reiterated its commitment to protecting Nigerians from fraudulent schemes and advised potential investors to verify the legitimacy of any financial investment on the Commission’s website before committing funds.
In light of recent schemes that led to the loss of trillions of naira and left countless families devastated, the SEC is intensifying its efforts to safeguard citizens by raising awareness about fraudulent platforms.
The Commission urges Nigerians to prioritise due diligence before engaging in any investment.
