Latest Update On The Bitcoin Wallet Scam In South Africa

Earlier this week, we had previously reported on the Bitcoin wallet saga happening live in South Africa. Now, we will be reporting an update to the story.

However, to refresh our minds, this update is as a result of the Ponzi scheme that South Africans invested in at a point in time, and now it seems they have lost all their money.

This Ponzi scheme still remains Bitcoin Wallet, and it is owned by Mbatha Sphelele Sgumza.

He had come up with this plan and promised the unsuspecting South Africans a hundred percent return on investment if they invest their south African rand in virtual currencies.

Like we mentioned earlier, unsuspecting citizens of South Africa believed his claims and some put in all of their life savings thinking that within fifteen days, they will be smiling either to the bank or to their homes with more cash.

However, on the fourth of July 2019, Mbatha shut down the company and the news on all fronts pictured angry South Africans at the door of the company trying to tear it down.

Update On The Story

Before Mbatha shut down operations of his company, it was believed that he took more than two million rands which are estimated to be a whopping $140000 in cash deposits daily.

He made an appearance on Nqubeko FM in Ladysmith to explain to all that occurred.

Furthermore, he claimed that he was compromised by a phishing scam, but on an earlier radio appearance, he claimed that Bitcoin wallet did not have any cash to actually payout.

That same evening after his appearance on Nqubeko FM, rumors around South Africa was that he had been arrested. This rumor led to about two hundred individuals affected by the scam to storm the Ladysmith police station.

They went there with a simple demand in mind. They only wanted to see the manager of Bitcoin wallet; Mbatha. Tensions at this time were indeed very high as investors had actually been unable to get through to Mbatha since the company crashed.

Also, an investor made moves to plead with the crowd that they should not overact to the matter at hand.

However, by the next morning, reports made the round that Mbatha was never arrested because the police could only make their arrest moves if investors opened cases against Mbatha.

By Wednesday, another crowd gathered around Mbatha’s home probably to speak with him. However, since they could still not reach him, the protestors set fire to Mbatha’s home.

According to a TimesLIVE reporter who spoke with an investor, the investor stated that the angry investors were seeking nothing but vigilante justice on Mbatha.

To Sum It Up

The exact amount of investors that invested in Mbatha’s Ponzi scheme is still very much unknown except for the fact that Mbatha stopped taking any deposit that was less than five thousand rands.

As it stands currently, Mbatha’s home has been burnt down, and the man in question is still on the run.

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