SEC Flags TOFRO as Suspected Ponzi Scheme, Warns Nigerians Against Investment

The Securities and Exchange Commission (SEC) has issued a public warning regarding TOFRO.COM (Tofro), an online cryptocurrency trading platform, labeling it a suspected Ponzi scheme. The SEC cautioned Nigerians to avoid investing in the platform, as it is not registered with the commission and is not authorized to operate within Nigeria’s capital market. The regulatory body clarified that TOFRO has not been approved to solicit investments from the public, raising concerns over its legitimacy.

Investigations into TOFRO revealed that the platform shares several characteristics common in fraudulent Ponzi schemes. These include promises of unusually high returns with minimal risk, reliance on referrals for sustaining payouts, and the consistent failure to fulfill investors’ withdrawal requests. The SEC emphasized that these red flags signal the platform’s potentially fraudulent nature and urged the public to exercise caution.

The SEC further warned that anyone choosing to invest in TOFRO does so at their own risk. The Commission’s Director-General, Emomotimi Agama, underscored the importance of being cautious when dealing with unregistered and unregulated investment platforms. He also advised Nigerians to verify the regulatory status of investment platforms before committing their funds.

TOFRO.COM claims to be an “innovative digital asset trading platform” with over 40 types of trading services and alleges to be headquartered in the United States. However, these claims have not been verified by the SEC, and the platform remains unregistered within Nigerian financial regulations. The SEC continued its efforts to educate and protect the public from financial fraud by encouraging people to check the registration status of any investment platform.

Source: The sun