The Securities and Exchange Commission (SEC) has issued a public warning regarding Tofro.com, an unregistered cryptocurrency trading platform that exhibits characteristics commonly associated with fraudulent Ponzi schemes. The SEC’s advisory urges Nigerians to exercise caution and thoroughly verify the legitimacy of investment platforms before committing funds.​……CONTINUE READING
According to the SEC, Tofro.com’s operations display several red flags typical of Ponzi schemes:​
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Unusually High Returns: The platform promises returns that are significantly higher than market averages, a common tactic used to lure investors.​
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Referral System Dependency: Tofro relies heavily on a referral system to sustain payouts, a hallmark of Ponzi schemes that depend on a continuous influx of new investors.
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Withdrawal Issues: Investors have reported difficulties in withdrawing their funds, with some facing delays or outright refusals, further indicating potential fraudulent activities.​
The SEC has clarified that Tofro.com is not registered with the commission and is not authorized to solicit investments from the public or operate within Nigeria’s capital market. This lack of registration means that investors have no legal recourse through the SEC in case of disputes or losses.​
The SEC strongly advises Nigerians to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk. Potential investors are encouraged to verify the registration status of any investment platform through the SEC’s official portal:
The commission also reminds the public that under Section 196 (3) of the Investments and Securities Act (ISA) 2025, promoting or operating unregistered schemes is a criminal offense, punishable by a fine of not less than N20 million or imprisonment for up to 10 years, or both.​
As the digital investment landscape continues to evolve, the SEC remains committed to protecting investors from fraudulent schemes. Nigerians are urged to conduct thorough due diligence and exercise caution when considering investment opportunities, especially those promising high returns with minimal risk.
