Tofro.com Flagged As A Suspected Ponzi Scheme By SEC
The Securities and Exchange Commission (SEC) has issued a stern warning against Tofro.com (Tofro), a platform purportedly offering cryptocurrency trading services, which the Commission suspects to be operating illegally.
In a public notice released on Thursday, the SEC raised serious concerns about the legitimacy of Tofro’s operations. The platform, according to the Commission, exhibits all the signs of a Ponzi scheme—promising exorbitant returns, incentivising aggressive referral programmes, and increasingly defaulting on withdrawal obligations.
“The attention of the Commission has been drawn to TOFRO.COM, which claims to operate as a cryptocurrency trading platform,” the statement read. “We wish to categorically state that Tofro is not registered with the SEC to solicit investments or conduct any capital market activities in Nigeria.”
Preliminary investigations conducted by the SEC reveal a disturbing pattern. The business model relies heavily on recruiting new investors to pay returns to earlier ones—a hallmark of fraudulent investment operations. In addition, there are growing reports of investors being unable to access their funds, further deepening suspicion.
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In light of these red flags, the Commission urged Nigerians to exercise utmost caution and avoid engaging with Tofro. “Anyone who invests in Tofro does so entirely at their own risk,” the SEC emphasised.
Speaking on the broader implications of such scams, SEC Director-General Emomotimi Agama highlighted the need for vigilance and due diligence when considering investment opportunities. “It is vital that Nigerians resist the allure of quick returns and ensure that any investment platform is properly registered and regulated,” Agama stated.
The SEC also reminded the public of its official portal where the registration status of all licensed capital market operators can be verified. The Commission reaffirmed its commitment to cracking down on illegal financial schemes and protecting investors from fraudulent practices.
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Content Credit| Ohidah Oluwaferanmi
Image Credit| www.barchart.com
