SEC Warns Nigerians: Unlicensed Investment Platforms Like TOFRO and Silverkuun Pose Massive Risk

The Securities and Exchange Commission has flagged Silverkuun and TOFRO as illegal operators, warning Nigerians to avoid these unregistered platforms amid rising digital investment scams.

With AI-powered fraud tactics on the rise, the SEC urges the public to verify platforms, stay informed, and report suspicious schemes to avoid financial loss.

As more Nigerians seek alternative income streams amid rising inflation and economic uncertainty, the Securities and Exchange Commission (SEC) has issued a critical warning about the growing threat of fraudulent investment platforms operating outside its regulatory oversight.

In its latest alert issued on Thursday, May 29, 2025, the SEC named Silverkuun Investment Cooperative Society, Silverkuun Limited, and TOFRO.COM as unauthorized and dangerous investment operators. The commission noted that both Silverkuun and TOFRO have been posing as legitimate financial services providers despite having no approval or registration to operate in Nigeria’s capital market.

Silverkuun and TOFRO: Unregistered and unregulated

According to the SEC’s official statement titled “Illegal Operator Alert!. Silverkuun Investment Cooperative Society and its affiliate, Silverkuun Limited, have falsely portrayed themselves as fund managers and investment advisors, misleading potential clients in the process. The commission categorically stated that the entities are not authorized to solicit or manage public investments.

Did you know that Silverkuun isn’t licensed or registered with the SEC? This raises some important questions about its legitimacy and the level of oversight involved!. The public is strongly advised to steer clear of any business dealings or investments associated with this entity or its representatives,” the statement read.

Similarly, TOFRO.COM, operated by ToFro Exchange Global Professional Station, is marketing itself as a cryptocurrency investment platform. However, the SEC has confirmed that TOFRO is not recognized or approved to carry out such activities in Nigeria.

“Engaging with TOFRO puts investors at risk of fraud and irreversible financial losses,” the Commission warned.

The rise of AI-driven investment scams

SEC concerns extend beyond traditional Ponzi schemes. It has also uncovered sophisticated digital scams that use artificial intelligence, deepfake technology, and social media advertising to deceive the public.

On May 9, 2025, a Facebook advertisement featuring what appeared to be a video endorsement from well-known journalist Rufai Oseni began circulating online. The clip promoted forex trading advice via Telegram, but upon inspection, experts confirmed that the footage was AI-generated, showing signs of facial distortion and mismatched audio.

This video led viewers to “Kai Trader Official”, a Telegram channel with over 151,000 subscribers, pushing users toward Pocket Option, a high-risk and unlicensed trading platform flagged by regulators in the US and UK.

Once inside these channels, victims are bombarded with fake testimonials, success stories, and “guaranteed profit” signals designed to gain trust. These tactics are meant to gradually lure users into investing large sums, which are often lost with no recourse.

In response, SEC Director General Dr. Emomotimi Agama stated that the Commission is ramping up enforcement and education initiatives under the upcoming ISA 2025, which will formally bring digital assets and cryptocurrency under SEC regulation.

“No one will be allowed to operate digital investment schemes without SEC authorization. Offenders will be shut down and prosecuted,” Dr. Agama said firmly.

The new act will require all virtual asset service providers (VASPs) and crypto exchanges to register with the SEC, making it easier to hold them accountable and protect the investing public.

SEC preventive measures

In a bold move to tackle scams right where they start, SEC is ramping up its investor education initiatives. By reaching out to the community, they’re empowering individuals with the knowledge they need to protect themselves and make informed decisions.

• Launching a capital market curriculum in schools and universities
• creating awareness podcasts and online video
• Running public campaigns on how to detect fraudulent investment platforms

“We want to empower Nigerians to identify scams before they fall victim,” Agama added. The Commission emphasized the importance of always verifying the registration status of any investment platform through its official portal: www.sec.gov.ng/cmos

Key red flags to watch out for

The SEC has also released a list of warning signs of a scam, including:

• Unrealistic returns with little or no risk Urgency or pressure to invest immediately
• Requests for payment via gift cards or crypto wallets
• Lack of verifiable company information or registration

Many of these tactics were found in previous scams like CBEX, which left countless Nigerians in financial distress after promising impossible returns.

Protect yourself

As digital finance grows, so do the risks. The SEC recent warnings underscore the importance of doing thorough research, verifying regulatory approval, and reporting suspicious platforms. If an investment sounds too good to be true, it probably is.