The Securities and Exchange Commission, SEC, has raised concerns over Trade on the Fore, Trofo, an unregistered platform suspected of running a Ponzi scheme.
In a notice issued on Thursday and made available to journalists, the commission cautioned Nigerians against investing in the platform, warning that it is not licensed to operate within the country’s capital market.
The regulatory body said Tofro presents itself as a cryptocurrency trading platform while luring unsuspecting members of the public with promises of unusually high returns.
SEC stressed that its investigations uncovered several red flags associated with fraudulent investment schemes.
Among the warning signs highlighted were the platform’s dependence on referrals to sustain payouts, and its failure to process withdrawal requests from subscribers — typical indicators of a Ponzi operation.
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“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,” the notice read.
It further warned that anyone investing in the platform does so at their own risk, urging the public to verify the registration status of any investment entity through the SEC’s official website, www.sec.gov.ng/cmos, before committing funds.
SEC also reiterated its commitment to protecting investors and maintaining transparency in Nigeria’s capital market.
Director-General of the Commission, Emomotimi Agama, emphasized the need for Nigerians to exercise caution and seek verified investment opportunities. He urged members of the public to be more discerning when approached by firms that are not under SEC regulation.
As part of its ongoing efforts, the commission pledged to continue monitoring the activities of unlicensed investment platforms and ensure that those found violating regulations face appropriate sanctions.
SEC’s alert adds to a growing list of warnings issued by the commission in recent times as it intensifies its crackdown on illegal investment operations across the country.
NAN
