Nigeria’s SEC Warns Public Against Unregistered Crypto Platform

The Nigerian Securities and Exchange Commission (SEC) warns the public against an unregistered crypto platform, TOFRO.COM (Tofro exchange).

The SEC released a public notice on its website on April 30, 2025, stating that the commission has been notified of the operation Tofro, which presents itself as a cryptocurrency trading platform.

The Commission also released the public notice on its X account on the 2nd of May, 2025.

The commission said that the self-acclaimed crypto exchange is not registered by the Nigerian SEC to solicit investments from the public or operate in any other capacity within the Nigerian capital market.

In addition, the SEC clearly stated that its investigation reveals that Tofro operates like a Ponzi scheme, like the collapsed CBEX scheme.

Tofro exchange also promises “unusually high returns, heavy reliance on a referral system to sustain pay-outs and failure to honour withdrawal requests from subscribers.”

So, the SEC strongly advised Nigerians to refrain from investing with Tofro, as any person who transacts with unregistered entities does so at his/her own risk.

The Commission emphasized the need for investors to verify the registration status of investment platforms via the Commission’s website before committing their funds to them.

International Organization of Securities Commissions (IOSCO) Warns Against Tofro Exchange

Similarly, through its International Securities & Commodities Alerts Network (I-SCAN), which publishes alerts and warnings about unauthorized financial service providers, IOSCO has named Tofro one of the unlicensed entities.

On the 11th of March 2025, IOSCO added Tofro to its long list of unauthorized financial entities. 

IOSCO stated that it received an alert from the Netherlands Authority for the Financial Markets (AFM) warning consumers not to respond to offers from Tofro Exchange.

The AFM added that Tofro is a suspected boiler room, a form of online investment fraud. It carries out its fraudulent activities by approaching unsuspected individuals to offer them investment proposals or shares that are worthless or non-existent.

In its warning, the AFM clearly stated that Tofro Exchange does not have an AFM license or a European Passport.

CAC and EFCC Registrations Do Not Qualify an Investment Scheme Legal: SEC

Meanwhile, the Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, has clarified that being registered with the Corporate Affairs Commission and having an SCUML certificate from the Economic and Financial Crimes Commission does not empower any entity to provide investment schemes in Nigeria.

The Director-General maintained that only investment schemes duly registered with the SEC are legal.

This clarification comes amidst allegations from individuals that the Nigerian SEC and other law enforcement agencies were aware of the financial service CBEX was offering to Nigerian citizens.

“We have seen many Ponzi schemes in the past, and the Investments and Securities Act has been signed into law by the President, and the law recommends a N20 million fine and 10 years imprisonment for offenders of Ponzi Schemes,”

Dr Emomotimi stated.