The Securities and Exchange Commission has identified the online investment platform Tofro.com as an unlicensed and possibly deceptive crypto trading venture.
On Thursday, the commission released an announcement cautioning Nigerians against using the platform, labeling its operations as dubious and suggestive of being a Ponzi scheme. According to the SEC, Tofro has not been registered for operation in any form within Nigeria’s capital market; hence, it does not have the authority to seek public investment legally.
As stated by the commission, Tofro operates by offering exceptionally high returns, depending significantly on a referral system for payments, and neglecting to process withdrawal demands—a typical set of warning signs linked to Ponzi scams.
“The commission takes this opportunity to announce that Tofro has not been registered with us for the purpose of soliciting investments from the public or operating in any other capacity within Nigeria’s capital market,” the statement said.
The statement further noted, “Inquiries have uncovered that Tofro’s activities display common signs of a deceptive Ponzi scheme, such as offering extraordinarily high yields, heavily depending on recruitment for sustaining payments, and failing to process withdrawal demands from members.”
The commission likewise advised investors to confirm the registration status of any platform via its official site prior to making an investment.
The Director-General of the SEC, Emomotimi Agama, advised Nigerians to be wary when confronted with investments promising high returns, particularly those coming from unapproved sources. “Nigerians must recognize the risks involved in investing their savings in schemes that lack registration or oversight by the SEC,” he emphasized.
The commission emphasized that those who invest in Tofro do so entirely at their own risk.
The PUNCH
The Securities and Exchange Commission has alerted traders about the risks of investing in Ponzi schemes, advising them to confirm any potential investments with the commission prior to making any financial commitments.
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