Protest in South Africa rises as crypto ponzi scheme says there’s no cash to pay out

South Africans woke up to the news that their beloved Ponzi scheme had shut down, and all the money they invested was nowhere to be found.This Ponzi scheme is none other than Bitcoin Wallet.

It was a very lucrative investment scheme in South Africa. And, it managed to attract lots of investors running into hundreds daily.

So many of them even clamored at the door of the company just to be a part of this robust investment. The once full office that had people making investments has been reported to be full of protesters asking for their cash back.

About The Scheme

News making the round suggests that the Bitcoin wallet Enterprise that both regulators and the media suspected of being a Ponzi scheme finally shut its doors on the 4th of July.

Investors were enticed with the promises of a hundred percent returns within two weeks.

This would be achieved by re-investing the deposits in virtual currencies. Now, they are interested in where their money was carried to since the company has shut down.

According to the founder; Sphelele Sgumza, he admitted that he does not have any more cash to pay to the clients. He claims he does not have any idea on how the system functions anymore.

Before Bitcoin Wallet closed, it had already grown very popular in South Africa, and Sphelele had stopped taking deposits that were less than $350 or five thousand rand.

Also, African News Agency made some speculations that the Bitcoin wallet firm had received roughly two million rands in cash deposits daily and that has been recorded as the biggest daily cash flow in the entire Ladysmith.

Mbatha; a previous paramedic claimed that in a radio interview back in June, his operations were aboveboard. However, there have been efforts by ANA to verify the legality of the business registration and it was not successful.

Also, the news agency talked with the FSCA; Financial Services Conduct Authority, a market regulator. Some reports stated that the registrar’s signature in the Bitcoin wallet’s business certificate looked like it was forged and investigations needed to be carried out.

Although there were previous reports of prospective fraud in South Africa, lots of South Africans had already invested in this new Cryptocurrency upstart.

Judging from reports made by ANA, investors would line up at the door of Bitcoin wallet office, provide their basic identification information, sign a distinct page form, and deposit whatever they could afford.

Next was to wait for about fifteen working days in a bid to receive a hundred percent returns. The charges the company took was ten percent administrative fee.

To Wrap It Up

The founder of this business operation said that the money investors paid were entrusted into the Bitcoin wallet and re-invested in virtual currencies then finally resold into the market at a much more higher price.

Investors have not still gotten their money; meanwhile, bitcoin wallet’s founder turned into a local celebrity, had luxury cars, and to top it up, he had a police escort attached to himself.

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