Nigerian financial regulator, Securities and Exchange Commission (SEC) has issued an urgent warning about an unregistered cryptocurrency trading platform that shows evidence of fraudulent activity.
In a public advisory on Wednesday, SEC cautioned investors against dealing with tofro.com, an online platform claiming to offer cryptocurrency trading services.
According to the SEC’s investigation, Tofro exhibits several red flags typical of Ponzi schemes, including promises of unusually high investment returns and a business model heavily dependent on recruiting new participants through referrals to maintain payments to existing users.
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“Our investigation has uncovered that many users are facing difficulties when attempting to withdraw their funds,” a spokesperson for the Commission stated. “This pattern of behavior is consistent with fraudulent investment operations.”
The regulatory body emphasized that Tofro operates without proper authorization, as it is not registered with the SEC to solicit investments from the public or conduct any legitimate business within Nigeria’s capital market.
Financial experts recommend that potential investors always verify the registration status of any investment platform before transferring funds. The regulatory agency maintains an official verification portal at www.sec.gov.ng/cmos where the public can check whether financial service providers are properly licensed.
“With the rising popularity of cryptocurrency investments, we’re seeing an unfortunate increase in fraudulent platforms targeting unsuspecting investors,” noted a market analyst familiar with digital asset regulations.
“Always conduct thorough research before entrusting your money to any online investment service.”
The Commission’s statement concluded with a stark warning: individuals who choose to invest with Tofro do so entirely at their own risk, with no regulatory protections available should they lose their funds.
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