SEC warns against illegal schemes, uncovers new Ponzi platform Tofro

..CAC, EFCC papers not licensed for investment operations- Agama

BY MOTOLANI OSENI

The Securities and Exchange Commission (SEC) has uncovered another suspected illegal investment platform, Tofro.com, warning Nigerians to steer clear of its deceptive cryptocurrency operations.

The platform, according to the Commission, is neither registered nor regulated by the SEC and exhibits the hallmarks of a Ponzi scheme.

In a statement issued on Thursday, the Commission revealed that Tofro lures investors with promises of unusually high returns, relies heavily on referral systems to sustain payouts, and has failed to honour withdrawal requests—classic traits of fraudulent schemes.

“The public is strongly advised to be wary about investing with Tofro, as any person who places such investment with the entity does so at his or her own risk,” the notice read. The Commission added that Tofro is not licensed to operate in any capacity within the Nigerian capital market.

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This is even as the Director-General of the SEC, Dr Emomotimi Agama, while speaking during a sensitisation tour in Abuja, emphasised that Nigerians must not mistake registration with the Corporate Affairs Commission (CAC) or possession of SCUML certificates from the EFCC as a licence to run investment businesses.

“It is disheartening that some Nigerians and foreign companies have specialised in duping the public. The government will not sit and watch this happen. SEC is educating the public—if it’s too good to be true, then watch out,” Agama said.

He warned that the newly enacted Investments and Securities Act prescribes penalties of N20 million and a 10-year jail term for operators of Ponzi schemes. “We are empowered to flush out these fraudulent entities damaging our economy,” he said.

Agama also denounced the use of promotional training programmes by illegal platforms to lure unsuspecting Nigerians into their schemes. “These tactics are illegal. Verify with the SEC before investing,” he cautioned.

Reinforcing the Commission’s stance, SEC Assistant Director of Enforcement, Tope Onwionoko, said the Commission would intensify financial literacy efforts to protect Nigerians from investment scams.

SEC urged Nigerians to always confirm the registration status of any investment company via its portal, www.sec.gov.ng/cmos, before parting with their money.