The Securities and Exchange Commission (SEC) has raised a red flag over the operations of TOFRO.COM, cautioning Nigerians against engaging with the unregistered cryptocurrency trading platform, which it described as having the hallmarks of a Ponzi scheme.
In an official notice to the public, the SEC advised investors to exercise extreme caution and conduct proper due diligence before committing funds to any financial scheme. The Commission stated that TOFRO is not licensed to operate within the Nigerian capital market and warned that it poses significant risk to unsuspecting investors.
SEC’s Findings
Based on its investigations, the Commission stated that TOFRO falsely presents itself as a cryptocurrency trading platform, but is neither registered nor compliant with the country’s investment regulatory framework.
The SEC highlighted several red flags commonly associated with Ponzi schemes, including:
- Promises of abnormally high returns with little or no risk.
- Dependence on a multi-level referral structure rather than actual investment performance to sustain payouts.
- Failure to honour investor withdrawal requests, leaving participants unable to recover their funds.
The regulatory agency explicitly warned that individuals who invest in TOFRO do so entirely at their own risk.
Official SEC Statement
“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 statement read.
“The Commission hereby informs the public that TOFRO is NOT REGISTERED by the Commission either to solicit investments from the public or to operate in any capacity within the Nigerian capital market.”
The Commission added that investigations confirmed TOFRO’s operations mirror typical Ponzi tactics, particularly the use of exaggerated profit claims, reliance on referrals, and repeated failure to process withdrawals.
Call for Investor Vigilance
Emphasizing the importance of vigilance, SEC Director-General Emomotimi Agama urged Nigerians to avoid unregulated investment schemes and to always verify the legitimacy of financial platforms before transacting. He encouraged the public to confirm registration status through the SEC’s official verification portal: www.sec.gov.ng/cmos.
Agama reiterated the Commission’s commitment to investor protection through public awareness campaigns and stricter enforcement measures. He emphasized that safeguarding financial wellbeing requires diligence and skepticism, especially amid the rising number of online scams targeting Nigerians.
Additional Insight
A review of TOFRO’s website shows that the platform brands itself as a “global professional station” for digital asset trading, claiming to offer more than 40 types of digital asset investment services. It also claims to be headquartered in the United States and operated by an international team. However, these assertions have not been verified by Nigerian regulatory authorities.
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