SEC Nigeria Warns Locals: “Invest in Tofro.com Crypto Trading Platform at Your Own Risk”
The Securities and Exchange Commission (SEC) of Nigeria has issued a stern warning to the public, advising Nigerians to steer clear of investment activities on Tofro.com, a crypto trading platform flagged as potentially fraudulent. The warning comes as part of the SEC’s ongoing efforts, alongside the Economic and Financial Crimes Commission (EFCC), to combat the rise of Ponzi schemes exploiting the growing interest in cryptocurrency and blockchain-based investments.
Tofro.com Labeled a High-Risk, Unauthorized Platform
According to an official notice from the SEC, Tofro.com is not registered or authorized to solicit investments from the public or operate in any capacity within Nigeria’s capital market.
“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 SEC emphasized.
Investigations revealed that Tofro’s activities display hallmarks typical of Ponzi schemes, including:
- Promises of unusually high returns
- Heavy dependence on referral networks to sustain payouts
- Failure to honor withdrawal requests from investors
The commission made it clear that any individuals choosing to invest with Tofro.com do so entirely at their own risk.
SEC Urges Nigerians to Verify Platforms Before Investing
Emomotimi Agama, the newly appointed Director-General of the SEC, highlighted the critical need for Nigerians to verify a platform’s regulatory status on the SEC’s official website before committing their funds.
He cautioned against being misled by platforms that claim registration with agencies like the Corporate Affairs Commission (CAC) or the Special Control Unit Against Money Laundering (SCUML) under the EFCC.
“Being registered with CAC or SCUML does not authorize any entity to solicit investments from the Nigerian public,” Agama clarified.
Agama also reiterated that high returns often signal high risks, especially when offered by operators lacking proper licensing and oversight.
Recent Surge in Crackdowns on Fraudulent Platforms
The SEC and EFCC have intensified their crackdown on illegal crypto and investment platforms over the past few months. Authorities have actively blacklisted suspicious investment platforms and launched public awareness campaigns aimed at shielding Nigerians from financial scams.
This latest warning about Tofro.com follows similar action against CBEX (Crypto Bridge Exchange), a digital asset platform that left investors with heavy losses. Despite portraying itself as a high-return investment opportunity, CBEX operated without any verified presence or authorization, leading the SEC to flag it as another unregistered and unregulated entity.
In addition to regulatory warnings, the EFCC has issued a wanted notice for eight individuals linked to CBEX’s alleged fraudulent operations.
Stay Informed, Stay Safe
As the popularity of crypto investments grows in Nigeria and across Africa, authorities are urging investors to prioritize safety over profit.
Before investing:
- Verify registration on the SEC website.
- Avoid platforms offering unrealistic returns.
- Report suspicious activities to the SEC or EFCC promptly.
TawkCrypto will continue to monitor developments around crypto regulation in Nigeria and across Africa to keep you updated and protected in the evolving blockchain economy.
