Victor EzejaThe Securities and Exchange Commission (SEC), has warned Nigerians against investing in a digital platform called Tofro, saying it is unregistered and has the features of a Ponzi scheme.
In a statement released on Wednesday, SEC said the online platform is positioning itself as a cryptocurrency trading platform, promising unusually high returns, and heavy reliance on a referral system to sustain pay-outs to investors.
Join our WhatsApp ChannelThe statement reads: “The attention of the Securities and Exchange Commission (“The 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.”
SEC stated that its preliminary investigations “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.”
READ ALSO: How Nigerians Lost N1.3trn On CBEX Digital Trading Platform
The Commission advised members of the public to be careful about investing with Tofro, warning that “any person who places such investment with the entity, does so at his/her own risk.”
The Commission further emphasised the need for potential investors to verify the registration status of investment platforms through SEC’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.
The regulator’s warning comes after thousands of Nigerians lost money, reportedly running into over a million invested in the Crypto Bridge Exchange (CBEX) platform, after it crashed recently.
Meanwhile, the Economic and Financial Crimes Commission (EFCC) has declared eight suspects, including four foreign nationals, wanted over alleged involvement in the Ponzi scheme platform. The EFCC and SEC had assured that the perpetrators would be brought to justice.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
