The Nigerian Securities and Exchange Commission (SEC) has issued a stern warning to crypto investors, advising them to steer clear of two platforms—Tofro and CBEX—due to serious concerns over fraudulent activities and unregistered operations…..CONTINUE READING
The SEC’s investigation into Tofro revealed several alarming signs, including:
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Unusually high returns: Promises of substantial profits that are not typical in legitimate investment schemes.
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Referral-based payouts: Heavy reliance on new investor recruitment to sustain payouts, a hallmark of Ponzi schemes.
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Withdrawal issues: Reports of users facing difficulties in withdrawing their funds.
The SEC emphasized that any investments made with Tofro are at the investor’s own risk, urging the public to exercise extreme caution.
Similarly, the SEC has raised red flags about CBEX, a crypto trading platform offering:
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100% monthly returns: An offer that is highly suspicious and indicative of potential fraud.
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Referral bonuses: Incentives for bringing in new users, which can lead to unsustainable financial structures.
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Lack of registration: Operating without the necessary approvals from regulatory authorities.
The SEC has advised Nigerians to avoid engaging with CBEX to protect themselves from potential financial losses.
To safeguard your investments, the SEC recommends:
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Conducting thorough research: Verify the legitimacy of any platform before investing.
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Avoiding platforms with unrealistic returns: Be wary of offers that seem too good to be true.
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Ensuring proper registration: Only engage with platforms that are registered and regulated by appropriate authorities.
The SEC’s warnings about Tofro and CBEX serve as a crucial reminder for crypto traders to remain vigilant. By staying informed and cautious, investors can protect themselves from falling victim to fraudulent schemes in the rapidly evolving crypto landscape.
