The Securities and Exchange Commission (SEC) has issued a warning to Nigerians regarding the operations of Tofro.com, an online cryptocurrency trading platform, the commission says is neither licensed nor authorized to operate within the Nigerian capital market.
In an official statement, the SEC cautioned that Tofro is not registered with the commission to solicit investments or conduct any form of capital market activity.
The commission further described the platform’s business model as bearing strong characteristics of a Ponzi scheme.
According to findings, Tofro.com entices users with unusually high returns, depends heavily on a referral-based structure to maintain payouts, and has failed to process withdrawal requests, common indicators of a fraudulent investment operation.
The SEC emphasized that any individual who decides to invest in the platform is doing so entirely at their own risk. The commission also reiterated the importance of verifying any investment outfit’s registration status via its official website before engaging in financial transactions.
Director-General of the SEC, Emomotimi Agama, stressed that being registered with the Corporate Affairs Commission (CAC) or listed under the Special Control Unit Against Money Laundering (SCUML) does not grant a company the legal authority to solicit public funds for investment purposes.
Regulatory oversight by the SEC is non-negotiable for any entity involved in offering investment products to Nigerians.
This warning is the latest in a broader effort by the SEC and the Economic and Financial Crimes Commission (EFCC) to clamp down on unregistered investment schemes. The regulators have increased surveillance and enforcement actions, including public notices and blacklists, aimed at shielding citizens from financial scams.
The alert on Tofro.com comes on the heels of similar concerns raised about CBEX (Crypto Bridge Exchange), another unregistered digital trading platform.
CBEX, which operated without verified online credentials, also promised high returns before disappearing, leaving a trail of financial losses for unsuspecting investors. The EFCC has since declared eight individuals linked to CBEX wanted for alleged fraud.
When a platform offers fast profits with little or no risk, skepticism is not only warranted, it’s necessary. Platforms like Tofro.com exploit financial desperation and low digital literacy, offering slick promises that often end in loss
Regulatory oversight is not a mere formality, it is a line of defense. Investors must go beyond glossy websites and endorsements.
They must verify legitimacy and understand the risks. In today’s digital finance space, caution is no longer optional, it’s essential.
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SEC Flags Tofro As Unlicensed And Potentially Fraudulent Crypto Platform – Tech Build Africa
