SEC Flags Tofro.com and PWAN as Unregistered Investment Platforms Amid Rising Ponzi Scheme Concerns

The Securities and Exchange Commission (SEC) of Nigeria has issued public warnings against two investment platforms—Tofro.com and Property World Africa Network (PWAN)/PWAN Max—citing concerns over fraudulent activities and lack of proper registration.

Tofro.com: Alleged Cryptocurrency Ponzi Scheme

On April 30, 2025, the SEC released a statement alerting the public about Tofro.com, an online platform presenting itself as a cryptocurrency trading site. The Commission clarified that Tofro is not registered to solicit investments or operate within the Nigerian capital market.

Investigations revealed that Tofro exhibits characteristics typical of a Ponzi scheme, such as promises of unusually high returns, reliance on a referral system to sustain payouts, and failure to honor withdrawal requests from subscribers. The SEC strongly advised the public to exercise caution and verify the registration status of any investment platform via its official portal: www.sec.gov.ng/cmos

This warning comes from the CBEX (Crypto Bridge Exchange) scandal, where the platform resumed operations despite a ban and an ongoing N1.2 trillion probe by the Economic and Financial Crimes Commission (EFCC).

PWAN/PWAN Max: Unlicensed Real Estate Investment Operations

In a separate May 6, 2025 notice, the SEC addressed concerns regarding PWAN and its affiliate, PWAN Max. These entities have been soliciting funds from the public for real estate investments without proper registration.

The Commission’s investigations indicated that PWAN’s operations also bear hallmarks of a Ponzi scheme, including promises of high returns and failure to fulfill withdrawal requests. As with Tofro, the SEC urged potential investors to verify the legitimacy of investment platforms through its official channels.

Public Advisory

The SEC emphasized the importance of due diligence and verification before engaging with any investment platform. Investors are encouraged to consult the Commission’s resources to ensure they are dealing with registered and compliant entities.

For more information and updates, visit the SEC’s official website: www.sec.gov.ng.