The Securities and Exchange Commission has raised alarm over another suspected illegal investment platform, TOFRO.COM (Tofro), cautioning Nigerians against falling for its fraudulent tactics.
In a statement issued on Thursday, the Commission warned that Tofro poses as a cryptocurrency trading platform but is not registered to operate in any capacity within Nigeria’s capital market.
“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 notice read.
“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,” it added.
According to SEC’s findings, Tofro’s operations show typical signs of a Ponzi scheme, including promises of unusually high returns, dependence on a referral system to sustain payouts, and failure to process subscribers’ withdrawal requests.
“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 Commission warned.
The notice also urged investors to verify the legitimacy of any investment platform through SEC’s registration portal at www.sec.gov.ng/cmos before engaging in any transaction.
The SEC stressed the need for public caution in light of the more than ₦1.3 trillion collectively lost to the CBEX Ponzi scheme in recent times.
SEC Director General, Emomotimi Agama, emphasized the importance of investor awareness and protection, noting the government’s resolve to crack down on fraudulent schemes.
“It is disheartening that some Nigerians and foreign companies have specialised in duping Nigerians, and the government won’t sit and watch Nigerians being duped. This is why SEC is coming out to the people to educate them that if it’s too good to be true, then watch out.
“We have seen many Ponzi schemes in the past, and the Investments and Securities Act has been signed into law by the President. The law recommends ₦20 million fine and 10 years imprisonment for offenders of Ponzi schemes,” he said.
He added, “That has empowered us to be in a better position to flush out all these fraudulent investment schemes that are damaging our economy.
“We are here to assist Nigerians in confirming legitimate investment schemes, and we are letting them know we feel their pain. CAC registration and EFCC certificates are not enough to prove a company is registered with SEC these are red flags.
“Training programmes used to lure people into these schemes are also illegal. Verify before you invest in any scheme, and that is our message to Nigerians.”