The Securities and Trade Fee (SEC) has issued a public warning about TOFRO.COM (Tofro), an unregistered cryptocurrency buying and selling platform.
SEC stated the platform exhibited traits of a fraudulent Ponzi scheme.
The discover cautioned Nigerians in opposition to falling for misleading funding guarantees and urged them to confirm the legitimacy of monetary platforms earlier than committing funds.
Based on the SEC, “Tofro claims to function as a cryptocurrency buying and selling platform, but it isn’t registered with the regulatory physique and doesn’t adjust to Nigeria’s capital market laws.
“Primarily based on SEC’s investigation, the platform shows basic Ponzi scheme indicators, together with:
“Guarantees of unusually excessive returns with little threat.
Heavy reliance on a referral system to maintain payouts slightly than precise funding returns.
“Failure to honor withdrawal requests leaves traders unable to entry their funds.”
The SEC explicitly warned that anybody investing in Tofro does so at their very own threat.
Official SEC Assertion on Tofro reads:
“The eye of the Securities and Trade Fee has been drawn to the actions of an internet platform often known as TOFRO.COM (Tofro), which holds itself out as a cryptocurrency buying and selling platform,” SEC stated in an announcement.
Learn Additionally:
“The Fee hereby informs the general public that Tofro is NOT REGISTERED by the Fee both to solicit investments from the general public or function in another capability inside the Nigerian capital market.”
Based on the fee, investigations had disclosed that Tofro’s operations exhibited the standard indicators of a fraudulent Ponzi scheme, together with the promise of unusually excessive returns, heavy reliance on a referral system to maintain pay-outs, and failure to honor withdrawal requests from subscribers.
SEC stated it strongly suggested the general public to be cautious about investing with Tofro, as any one who positioned such funding with the entity dod so at his/her personal threat.
The Fee reminded potential traders of the necessity to confirm the registration standing of funding platforms by way of the Fee’s devoted portal: www.sec.gov.ng/cmos earlier than transacting with them.
SEC Director-Common Emomotimi Agama careworn the significance of investor consciousness, noting that Nigerians should keep away from placing their hard-earned cash into unregistered or unregulated monetary schemes.
He urged people to at all times confirm funding platforms earlier than committing funds to keep away from monetary loss.
With fraudulent schemes more and more focusing on unsuspecting traders, SEC continues to strengthen enforcement measures and educate the general public on monetary safety.
The fee suggested all Nigerians to examine the registration standing of any funding platform by way of its official portal earlier than participating in transactions.
