Nigeria’s Securities and Exchange Commission (SEC) has issued a public warning against Tofro.com, an online platform that promotes itself as a cryptocurrency trading operation. According to the commission, Tofro is neither registered nor authorised to solicit investments from the Nigerian public.
In an official notice dated May 2, 2025, SEC stated that Tofro’s activities display multiple red flags associated with ponzi schemes. These include promises of unusually high returns, dependence on referral-based commissions, and widespread reports of failed withdrawals by subscribers.
“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,” the statement read.
The warning comes as Nigerians increasingly turn to online investment schemes amid economic hardship and rising interest in cryptocurrency markets. However, regulatory authorities have consistently cautioned that unverified platforms pose a significant risk to unsuspecting investors. Additionally, SEC has charged all fintechs, cryptocurrency firms and exchanges to register with the commission.
SEC’s investigations found that Tofro exhibits classic signs of fraud, such as unsustainable payout models, lack of transparency, and violations of investor protection rules. The platform’s failure to honour withdrawal requests has also triggered complaints from users.
“This is a typical playbook for Ponzi operations,” the commission noted. “We strongly advise the public to be extremely cautious in dealing with such schemes. Anyone who chooses to invest in Tofro does so at their own risk.”
To prevent falling victim to such scams, SEC urged the public to verify the registration status of all investment platforms through its official Capital Market Operator portal at www.sec.gov.ng/cmos.
The Commission concluded its notice by reiterating its commitment to protecting investors and maintaining the integrity of Nigeria’s financial markets.
