The Securities and Exchange Commission (SEC) has raised an alarm about TOFRO.COM, a cryptocurrency platform it believes is operating illegally in Nigeria. In a recent statement, the commission revealed that TOFRO is not registered under Nigeria’s capital market laws and displays several tell-tale signs of a Ponzi scheme.
Investigations show the site offers investors unusually high returns with minimal risk, while depending heavily on a referral structure to pay users. According to SEC, many participants have also been unable to withdraw their funds — a common sign of fraudulent operations. “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 stated.
The Commission has urged the public to approach financial platforms with caution, especially those promising quick and excessive gains. “Any person who places such investment with the entity does so at his/her own risk,” the notice added.
SEC Director-General Emomotimi Agama also warned Nigerians to stop committing funds to unregulated platforms. He encouraged the public to always check the status of investment companies through the Commission’s registration portal.
With crypto scams on the rise across Nigeria, the SEC says it is tightening oversight and stepping up education efforts to protect retail investors. The commission had earlier taken similar steps to warn against other suspicious financial operations in the country, as reported in local media.
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