The Securities and Exchange Commission (SEC) has warned Nigerians to avoid engaging in investment activities on Tofro.com, labeling the online platform as a potentially fraudulent crypto trading operation.
According to the commission, Tofro is not authorized to operate in the Nigerian capital market lacking both the necessary regulatory approval and legal backing to solicit investments from the public.
“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 notice read.
The SEC explained that Tofro’s operations exhibit classic Ponzi scheme traits such as:
Offering unusually high returns
Depending on referrals for payouts, and
Failing to honor withdrawal requests.
The commission emphasized that anyone choosing to invest in the platform does so entirely at their own risk.
“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 honor withdrawal requests from subscribers.”
SEC Director-General, Emomotimi Agama, stressed the importance of verifying any platform’s registration status on the commission’s official website before investing. He urged Nigerians to be wary of high-return promises from unlicensed operators warning that putting hard-earned money into ventures not regulated by the SEC carries serious risk.
He also cautioned that being registered with the Corporate Affairs Commission (CAC) or the Special Control Unit Against Money Laundering (SCUML) under the EFCC does not make an investment scheme legitimate or authorized to solicit funds from the public.
The SEC and EFCC have intensified their crackdown on Ponzi schemes in recent months by blacklisting suspicious investment platforms and launching public awareness campaigns aimed at protecting Nigerians from financial fraud.
The warning follows a public outcry concerning the operations of the digital asset trading platform, CBEX. Despite lacking any verified social media presence, CBEX portrayed itself as a high-return investment platform, but eventually left investors facing significant financial losses.
SCAM ALERT | Kenyans Count Losses on CBEX Crypto and Forex Trading Platform
“Today morning, I woke up with like $6,000 (KES 777,680) in my crypto wallet. But at around 7 PM, it had been cleared to zero.”https://t.co/h1ZWFjfKZa @KeTreasury @CMAKenya @CBKKenya @DCI_Kenya pic.twitter.com/0h7jq8cRXg
— BitKE (@BitcoinKE) April 16, 2025
The SEC had earlier warned the public that CBEX is one of several unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes without regulatory approval, operating entirely outside the SEC’s oversight.
EFCC, on its part, has issued a wanted notice for eight individuals accused of participating in the alleged fraudulent operation conducted via Crypto Bridge Exchange (CBEX).
REGULATION | @officialEFCC Releases List of 8 Nigerians and Kenyans Alleged to Be Behind CBEX Fraud
The platform has attracted users from various countries, including Kenya and Egypt. In Kenya, individuals complained of losing fundshttps://t.co/26kVa9blHG @DCI_Kenya pic.twitter.com/sNquFMaB4s
— BitKE (@BitcoinKE) April 28, 2025
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