SEC Uncovers Another Suspected Illegal Investment Platform, Warns Nigerians

The Securities and Exchange Commission has uncovered another suspected illegal investment platform identified as TOFRO.COM (Tofro), warning Nigerians against falling for their antics to obtain money from them through the promise of usually high returns.

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

In the notice, the SEC warned that the suspected investment platform holds itself out as a cryptocurrency trading platform, adding that such an investment scheme is not registered by 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 wary 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 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 an 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.”

Nigerians have collectively lost over ₦1.3trn to the CBEX Ponzi scheme, underscoring the urgent need for greater awareness.

The SEC Director-General, Emomotimi Agama, had said it is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC.

Agama said, “It is disheartening that some Nigerians and foreign accomplices have specialised in duping Nigerians, and the government won’t sit and watch Nigerians being duped, and this is what the SEC is coming out to the people to educate them – that if it’s too good to be true, then watch out.

“We have seen many Ponzi schemes in the past, and the Investments and Securities Act was signed into law by the President, and the law recommends a ₦20m fine and 10 years imprisonment for offenders of the Ponzi schemes.

“So, that has empowered us to be in a better position to flush out all these fraudulent investment schemes that are damaging our economy

“We are using this sensitisation outreach to bring information to our people, and that is why we are here and telling them that we are here to assist them to confirm legitimate investment schemes, and we are letting them know we feel their pain.

“As we are doing this, we have helped to educate them against being duped. CAC registration and EFCC certification are not enough to show that the company is registered with the SEC, and these are red flags.

“Training programmes being organised by these people to lure people into their schemes are also illegal. Verify before you invest in any scheme, and that is our message to Nigerians.”

SEC Uncovers Another Suspected Illegal Investment Platform, Warns Nigerians is first published on The Whistler Newspaper