“TOFRO.COM: SEC WARNS NIGERIANS ABOUT SUSPECTED PONZI SCHEME”
GREATRIBUNETVNEWS–The Securities and Exchange Commission has raised a red flag over Tofro.com, a suspected illegal investment platform promising high returns through cryptocurrency trading. The Commission warns that Tofro.com is not registered with SEC and exhibits characteristics of a fraudulent Ponzi scheme, including:
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– Unrealistic Returns: Promising unusually high returns to investors
– Referral System: Relying heavily on referrals to sustain payouts
– Withdrawal Issues: Failing to honor withdrawal requests from subscribers
The SEC advises Nigerians to exercise caution and verify investment platforms’ registration status before investing. You can check the SEC’s website for a list of approved capital market operators. Investments that seem too good to be true often are, so it’s essential to be vigilant
*Red Flags to Watch Out For:*
– *Unregistered Platforms*: Ensure the platform is registered with the SEC
– *Unrealistic Promises*: Be wary of investments promising unusually high returns
– *Pressure to Invest*: Be cautious of platforms pressuring you to invest quickly
If you suspect an investment platform is a Ponzi scheme, report it to the SEC. Remember, protecting your investments is crucial
The notice reads: “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 the 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.
“Investigations have revealed that Tofro’s operations exhibit the typical indicators of a fraudulent Ponzi scheme, including the promise of unusually high returns, heavy reliance on a referral system to sustain pay-outs and failure to honour withdrawal requests from subscribers.
“Accordingly, 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/her own risk.
“The Commission similarly reminds potential investors of the need to VERIFY the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.”
The SEC Director-General, Emomotimi Agama said it is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the Commission.
