The Securities and Exchange Commission (SEC) has issued a strong advisory warning against TOFRO.COM (Tofro), a cryptocurrency platform operating without regulatory approval. The SEC cites clear signs of a Ponzi scheme.

In a public statement, the SEC revealed that Tofro is not registered to conduct investment activities within Nigeria’s capital market and has been soliciting funds from the public under pretenses. According to the regulatory body, Tofro’s operations mimic those of a fraudulent Ponzi scheme, characterized by the promise of unusually high returns with minimal risk, dependence on a referral-based reward system, and persistent failure to process investors’ withdrawal requests.

“These are classic indicators of a financial scam,” the commission noted, warning that any individual investing in Tofro does so at their own risk.

The official SEC announcement read:

“The attention of the Securities and Exchange Commission has been drawn to the activities of an online platform known as TOFRO.COM (Tofro), which holds itself out as a cryptocurrency trading platform. 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.”

SEC Director-General Emomotimi Agama emphasized the need for increased investor vigilance amid the growing prevalence of digital financial fraud. He reiterated the Commission’s ongoing efforts to promote financial security through regulatory enforcement and public education.

Agama urged Nigerians to confirm the compliance status of any investment platform using the Commission’s official verification portal: www.sec.gov.ng/cmos.

This warning comes amid a surge in unlicensed crypto investment schemes targeting vulnerable investors. Regulatory authorities continue to encourage the adoption of compliance management systems and regulatory technology solutions to strengthen risk mitigation and financial crime prevention.

The SEC’s actions underscore the importance of a robust regulatory framework and the critical role of compliance audits, investor awareness, and regulatory monitoring in safeguarding financial markets from exploitation.

As part of its mandate, the Commission remains committed to proactive regulatory enforcement, deploying RegTech innovations and compliance analytics to combat financial fraud and protect retail investors across Nigeria’s evolving digital economy.