SEC warns Nigerians towards suspected TOFRO Ponzi scheme, urges funding warning
The Securities and Trade Fee (SEC) has issued a public warning about TOFRO.COM (Tofro), an unregistered cryptocurrency buying and selling platform.
SEC says the platform reveals traits of a fraudulent Ponzi scheme.
The discover cautions Nigerians towards falling for misleading funding guarantees and urges them to confirm the legitimacy {of financial} platforms earlier than committing funds.
SEC’s Investigation and Findings
In response to the SEC, Tofro claims to function as a cryptocurrency buying and selling platform, but it’s not registered with the regulatory physique and doesn’t adjust to Nigeria’s capital market laws.
Based mostly on SEC’s investigation, the platform shows traditional Ponzi scheme indicators, together with:
- Guarantees of unusually excessive returns with little threat.
- Heavy reliance on a referral system to maintain payouts relatively than precise funding returns.
- Failure to honor withdrawal requests leaves buyers unable to entry their funds.
The SEC explicitly warned that anybody investing in Tofro does so at their very own threat.
Official SEC Assertion on Tofro
“The eye of the Securities and Trade Fee has been drawn to the actions of an internet platform often known as TOFRO.COM (Tofro), which holds itself out as a cryptocurrency buying and selling platform,” SEC stated in a press release.
“The Fee hereby informs the general public that Tofro is NOT REGISTERED by the Fee both to solicit investments from the general public or function in another capability inside the Nigerian capital market.”
In response to the fee, investigations have revealed that Tofro’s operations exhibit the standard indicators of a fraudulent Ponzi scheme, together with the promise of unusually excessive returns, heavy reliance on a referral system to maintain pay-outs, and failure to honor withdrawal requests from subscribers.
SEC says it strongly advises the general public to be cautious about investing with Tofro, as any one who locations such funding with the entity does so at his/her personal threat.
The Fee reminds potential buyers of the necessity to confirm the registration standing of funding platforms by way of the Fee’s devoted portal: www.sec.gov.ng/cmos earlier than transacting with them.
SEC Urges Nigerians to Be Vigilant
SEC Director-Common Emomotimi Agama careworn the significance of investor consciousness, noting that Nigerians should keep away from placing their hard-earned cash into unregistered or unregulated {financial} schemes. He urged people to all the time confirm funding platforms earlier than committing funds to keep away from {financial} loss.
With fraudulent schemes more and more concentrating on unsuspecting buyers, SEC continues to strengthen enforcement measures and educate the general public on {financial} safety. The fee advises all Nigerians to test the registration standing of any funding platform by way of its official portal earlier than partaking in transactions.
What it’s best to know
- Following a test on the web site, ToFro Trade International Skilled Station says it’s an revolutionary digital asset buying and selling platform serving skilled buying and selling customers all over the world, devoted to exploring high-quality revolutionary digital asset funding alternatives.
- It claims to offer greater than 40 varieties of digital asset product buying and selling and funding providers.
- Headquartered in america, it’s operated by the ToFro Trade International Skilled Station staff.
