The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians over the operations of an unregistered online platform, Tofro.com, describing it as a suspected Ponzi scheme disguised as a cryptocurrency trading platform.
In an official notice released by the Commission, SEC cautioned that Tofro is not licensed to operate or solicit investments within the Nigerian capital market. The Commission also emphasized that its investigation revealed red flags typical of fraudulent investment operations.
“Tofro exhibits the typical characteristics of a Ponzi scheme, including promises of unusually high returns, dependence on a referral system to generate pay-outs, and failure to honour withdrawal requests,” the SEC stated.
It warned the public against falling prey to such schemes and advised that anyone who invests in the platform does so at their own risk.
“The Commission hereby informs the public that 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 statement read.
Nigerians were further urged to verify the registration status of any investment platform through the Commission’s official portal at www.sec.gov.ng/cmos before engaging in any financial transaction.
The SEC’s warning forms part of its broader efforts to clamp down on illegal investment schemes and protect unsuspecting investors from financial losses.
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