The Securities and Exchange Commission (SEC) has issued a strong public advisory against Tofro.com, a self-proclaimed cryptocurrency trading platform, describing it as unregistered and potentially fraudulent.
In a statement released by the Commission, Tofro.com was said to display the hallmark characteristics of a Ponzi scheme, including unrealistic returns, referral-based payouts, and refusal to honor investor withdrawals.
“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 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.
Key Findings from SEC’s Investigation
According to the SEC’s internal review, Tofro:
- Promises abnormally high returns with little to no risk.
- Relies heavily on referral schemes to sustain payouts, rather than legitimate trading activity.
- Blocks withdrawal requests, leaving investors unable to access their funds.
The Commission noted that these are red flags consistent with classic Ponzi operations. It stressed that investors engaging with the platform do so at their own risk, as Tofro has no regulatory approval to operate in Nigeria.
SEC Urges Nigerians to Verify Investment Platforms
SEC Director-General Emomotimi Agama underscored the importance of due diligence, urging Nigerians to verify any investment platform’s registration status through the Commission’s website at www.sec.gov.ng/cmos before committing funds.
“We must remain vigilant. The public must avoid dealing with any financial services provider that has not been registered by the SEC,” Agama warned.
The warning is part of the Commission’s ongoing efforts to combat financial fraud, improve public awareness, and strengthen enforcement across the capital market.
Tofro’s Claims Contradict SEC’s Findings
Despite SEC’s warnings, Tofro’s website describes itself as a “global professional station for digital asset trading,” claiming to offer over 40 types of investment products. It also states it is headquartered in the United States and targets professional traders worldwide. However, these assertions could not be independently verified, and the SEC has made clear that Tofro holds no legal recognition or approval in Nigeria.
The SEC advises potential investors to:
- Avoid platforms promising quick, guaranteed returns.
- Be cautious of schemes that incentivize user recruitment over real investment products.
- Always verify the registration status of operators using the SEC’s official portal.
