The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians against engaging with TOFRO.COM, a cryptocurrency trading platform the commission says exhibits all the signs of a fraudulent Ponzi scheme.
In an official statement released this week, the SEC stated, “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 commission further emphasized 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.”
The regulator’s investigation revealed several red flags.
These include promises of unusually high returns with minimal risk, a business model that relies heavily on a referral system rather than genuine trading activity, and repeated failures to honor withdrawal requests, leaving investors unable to access their funds.
Based on these findings, the SEC declared that anyone investing in Tofro is doing so at their own risk.
Director-General of the SEC, Emomotimi Agama, urged Nigerians to remain vigilant and avoid putting their hard-earned money into unregulated or unverified platforms.
He stressed the importance of checking the legitimacy of any investment provider through the SEC’s official portal at www.sec.gov.ng/cmos.
Despite SEC’s warnings, a review of TOFRO’s website shows the platform claims to be an “innovative digital asset trading platform” serving professional users globally, with more than 40 digital asset products and investment services.
It also claims to be headquartered in the United States and operated by a team under the name “ToFro Exchange Global Professional Station.”
Still, the commission insists the platform is operating outside the boundaries of Nigerian capital market laws and urges the public to steer clear.
As investment fraud continues to evolve in complexity, the SEC says it remains committed to protecting the investing public through ongoing enforcement, public education, and transparent regulatory oversight.
