The Securities and Exchange Commission (SEC) has warned Nigerians about a new Ponzi scheme and its online platform known as TOFRO.COM (Tofro), which holds itself out as a cryptocurrency trading platform.

In a statement on Friday, the SEC informed the public that Tofro is not registered either to solicit investments from the public or operate in any other capacity within the Nigerian capital market.

The SEC said investigations revealed that Tofro's operations exhibit the typical indicators of a fraudulent Ponzi scheme, including the promise of unusually high returns, heavy reliance on a referral system to sustain pay-outs and failure to honour withdrawal requests from subscribers.

"Accordingly, the public is strongly advised to be wary about investing with Tofro, as any person who places such investment with the entity, does so at his/her own risk.

"The commission similarly 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."

ASA