Run From This Platform, SEC Warns Crypto Traders

The Securities and Exchange Commission (SEC) has issued a public warning to crypto traders about a particular trading platform they must avoid except they intend to burn their fingers.

It said the reason is because the platform exhibits characteristics of a fraudulent Ponzi scheme

Mentioning the trading platform as TOFRO.COM (Tofro), it says it is an unregistered cryptocurrency trading platform, cautioning Nigerians against falling for deceptive investment promises and urges.

IT also urges crypto traders to verify the legitimacy of financial platforms before committing funds.

SEC’s Investigation and Findings

According to the SEC, Tofro is not registered with the regulatory body and does not comply with Nigeria’s capital market regulations, and yet claims to operate as a cryptocurrency trading platform.

READ ALSO: 5 Essential Secrets For Successful Cryptocurrency Trading

READ ALSO: Breaking: God Answers Prayers Of Cryptocurrency Traders, CBN Lifts Ban

Issuing an official statement on Tofro , the commission said based on SEC’s investigation, the platform displays classic Ponzi scheme indicators, including:

1. Promises of unusually high returns with little risk.
2. Heavy reliance on a referral system to sustain payouts rather than actual investment returns.
3. Failure to honor withdrawal requests leaves investors unable to access their funds.

“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,” SEC said in a statement.

“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.”

READ ALSO: Governor’s Bombshell: Cryptocurrency Ban Done In Bad Faith

The commission warned that investors who would decide to put their money on the platform, would be doing so on their own risks.

It also underscored the imperative of carrying out due diligence before investing on any platform The Commission 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.