The Securities and Exchange Commission (SEC) has uncovered another suspected illegal investment platform, identified as TOFRO.COM (Tofro), and has warned Nigerians against falling for its deceptive tactics to obtain money through promises of unusually high returns.

The Commission raised the alarm in a notice issued on Thursday and made available to the Nigerian Tribune.

In the notice, the SEC warned that the suspected investment platform presents itself as a cryptocurrency trading platform, adding that such an investment scheme is not registered with the Commission.

The SEC stated that, based on its investigations, 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 SEC strongly advised Nigerians to be cautious about investing with Tofro, noting that any person who places such an investment with the entity does so at their own risk.

The notice 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 presents itself as a cryptocurrency trading platform.”

“The Commission hereby informs the public that Tofro is NOT REGISTERED with the Commission, either to solicit investments from the public or to 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 cautious about investing with Tofro, as any person who places such an investment with the entity does so at their 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.”

The SEC Director-General, Emomotimi Agama, emphasised that it is crucial for Nigerians to understand the dangers of putting their hard-earned money into ventures that are neither registered nor regulated by the SEC. (Nigerian Tribune)