The Securities and Exchange Commission (SEC) has issued a public warning against an online cryptocurrency trading platform, Tofro.com, labelling it as unregistered and potentially fraudulent. The commission described the platform’s operations as suspicious and warned Nigerians to steer clear of it to avoid financial loss.
In a notice made public on Thursday, the SEC stated that Tofro.com is not authorised to operate in any capacity within the Nigerian capital market. The commission raised alarm over the way the platform conducts its business, pointing out clear signs of a Ponzi scheme. It explained that Tofro promises extremely high returns, depends heavily on referral systems to keep payments going, and does not allow investors to withdraw their money when requested.
“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,” the SEC said in the notice.
It further stated, “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.”
This development comes as the SEC continues to fight against Ponzi schemes and unlicensed financial platforms in the country. The commission has repeatedly warned the public not to fall for investment offers that promise quick and unrealistic profits, especially from platforms that are not regulated.
The Director-General of the SEC, Mr. Emomotimi Agama, used the opportunity to urge Nigerians to always be careful and carry out proper checks before investing in any online scheme. He advised the public to visit the SEC’s official website to confirm whether a company or platform is registered and approved to operate.
“It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” Agama said.
He warned that anyone who invests in Tofro or similar platforms does so at their own risk, and the commission would not be able to assist such individuals in recovering their money. According to him, one of the main dangers of these platforms is that they are usually run in secrecy and collapse suddenly, leaving investors stranded.
The SEC also reminded Nigerians that once an investment offer seems too good to be true—especially when high profits are promised in a short time—it is likely to be a scam. Tofro.com reportedly uses flashy marketing strategies and encourages users to bring in more people, which is common with Ponzi-style operations.
In the past, the commission has also flagged other platforms for similar behaviour and advised the public to be wary. Recently, the Economic and Financial Crimes Commission (EFCC) secured a court order to arrest six promoters of CBEX, another suspicious platform.
Financial experts have noted that the rise of digital assets and online investments has created a space where many Nigerians are falling victim to unregulated and dishonest operators. The SEC continues to remind investors to make safety a top priority by sticking to platforms registered and monitored by the appropriate financial authorities.
