SEC Uncovers Suspected Illegal Investment Platform TOFRO.COM
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has identified another suspected illegal investment platform operating under the name TOFRO.COM (Tofro), and has cautioned Nigerians to exercise extreme caution and avoid falling prey to its schemes promising unusually high returns.
The Commission issued a public notice on Thursday, alerting journalists and the general public to the activities of this suspected fraudulent entity.
In its notice, the SEC stated that the identified investment platform presents itself as a cryptocurrency trading platform. The Commission made it clear that TOFRO is not registered by the SEC to solicit investments from the public or to operate in any other capacity within the Nigerian capital market.
The SEC disclosed that its investigations into TOFRO’s operations have revealed characteristics typical of a fraudulent Ponzi scheme. These indicators include the promise of returns that are significantly higher than what is realistically achievable in the market, a strong reliance on a referral system to generate payouts to existing investors, and a failure to honor withdrawal requests submitted by subscribers.
Consequently, the SEC is strongly advising Nigerians to be exceedingly wary of investing with TOFRO. The Commission explicitly stated that any individual who chooses to invest with this entity does so entirely at their own risk.
The public notice released by the SEC reads: “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 hereby informs the public that the 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.
“Investigations have revealed that Tofro’s operations exhibit the typical indicators of a fraudulent Ponzi scheme, including the promise of unusually high returns, heavy reliance on a referral system to sustain pay-outs and failure to honour withdrawal requests from subscribers.
“Accordingly, the public is strongly advised to be wary about investing with Tofro, as any person who places such investment with the entity, does so at his/her own risk.
“The Commission similarly reminds potential investors of the need to VERIFY the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.”
Earlier, the SEC Director-General, Emomotimi Agama, conveyed the crucial need for Nigerians to understand the dangers inherent in placing their hard-earned money into ventures that are not registered or regulated by the Securities and Exchange Commission. This latest warning regarding TOFRO underscores the SEC’s ongoing efforts to protect investors and maintain the integrity of the Nigerian capital market.
