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Daniel Adaji
The Securities and Exchange Commission (SEC) has declared TOFRO.COM, an unregistered cryptocurrency platform, as a fraudulent operation exhibiting traits of a Ponzi scheme.
This announcement follows an investigative report by Pointblank News, which exposed how the platform, also known as MTS/TOFRO, locked out Nigerian investors and vanished with their funds.
“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,” SEC said in an official statement on Thursday.
Thousands of Nigerians were affected after TOFRO suddenly shut down on April 19, 2025. Victims reported being unable to access their accounts or withdraw their funds.
One source told Pointblank News, “I was promised access again by April 20, but I can’t even log in. All my savings are gone.”
SEC revealed that TOFRO lured investors with the promise of unusually high returns and operated a multi-level referral system typical of Ponzi schemes.
The platform failed to honour withdrawal requests and relied on new investors to pay existing ones—signs commonly associated with fraudulent operations.
SEC Director-General Dr. Emomotimi Agama emphasised the need for vigilance.
“We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” he said.
TOFRO, also operating under the name MTS/TOFRO, had claimed to be a U.S.-based platform offering digital asset trading services. It presented itself as an innovative global exchange, allegedly managed by a seasoned investment expert, Harris Levy.
Investors were told that the platform had secured $30 million in deposits and was in the process of formal registration with the SEC.
However, between April 14 and 19, users reported restricted withdrawals, followed by a complete block of access on April 19. TOFRO operated several administrative accounts including “Harris Levy,” “Harris Levy 2,” and “MTS Administrator,” according to Pointblank News. A Nigerian known as “AllThings,” who reportedly helped introduce MTS to Nigeria, has since gone into hiding.
“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,” the SEC stated. “Investigations have revealed that TOFRO’s operations exhibit the typical indicators of a fraudulent Ponzi scheme.”
SEC warned that individuals who invest in TOFRO do so at their own risk. It urged Nigerians to always verify the registration status of any investment platform through its official website: www.sec.gov.ng/cmos.
Under the new Investments and Securities Act (ISA) 2025, SEC has broader powers to prosecute digital investment fraud and collaborate with law enforcement agencies. This includes clamping down on platforms like TOFRO that operate without regulatory approval.
As it stands, TOFRO has joined a growing list of fraudulent schemes, including the notorious MMM, which collapsed in 2016. SEC continues to advise the public to be cautious and conduct thorough checks before committing funds to any financial venture.
Meanwhile, victims of TOFRO are calling for urgent intervention from the Economic and Financial Crimes Commission (EFCC) and international bodies such as INTERPOL to trace and recover stolen funds.