Mob Burns Down Purpted Crypto Ponzi Schemer & # 39; s House in South Africa

3 min read

An angry crowd in Ladysmith, South Africa, has reportedly set fire to the Sphelele Mbatha residence, known as Sgumza, a manager of alleged crypto Ponzi scheme Bitcoin Wallet. The crowd was probably a collection of victims who had lost money through Bitcoin Wallet, according to the Ladysmith Gazette report on July 10.

The local police have investigated an unnamed Ponzi scheme in Ladysmith, as reported by IOL. However, according to the report, it seems that Bitcoin Wallet has made promising quick promises to potential investors.

An unnamed community member reportedly told the publication that Bitcoin Wallet promised to double investors' money within a few weeks:

"From what we have heard, Bitcoin Wallet is an investment, not a pyramid scheme. (…) He (the owner) has spoken in the media that he is investing the money in bitcoins and can double that money within three hours. ..) If you deposit an amount of R100000, you will receive an amount of R200000 within 15 days. "

According to an earlier announcement, just five days prior to the arson event, Sgumza told Ladysmith Gazette that he was simply a manager, without knowledge or power over the company's alleged back-end problems:

"I don't know what's going on. I don't know online or how this system works. I need to be trained. The owner of the company operates the online business. I was only the manager of the Ladysmith site. & # 39 ;

Sgumza further claimed that he himself had lost money and now had no work left:

"I will not continue to work. I have no more money. The owner says that people should go online and collect their money online. I myself have invested my money in it. I have submitted my bank details online and now I am waiting."

Tensions have been reportedly high in the area, with a communications officer receiving complaints about crowds, public nuisance, and traffic congestion. In addition, customers reportedly took on a scuffle when Bitcoin Wallets staff rejected them as they tried to enter the company's offices.

Sgumza reportedly said in a radio interview on July 9 that Bitcoin Wallets customers were cheated by a suspected unrelated scam. The scam was reportedly aimed at people who were creditors of Bitcoin Wallets, and said they had to sign up at a website to collect their money.

As reported by Cointelegraph on July 2, South Africa Bitcoin traded against nearly $ 11,000 on the Luno crypto-exchange, which at that time was 10.5% higher than the Cointelegraph price index. However, Adamant Capital partner Tuur Demeester warned that the stock price probably represents "inflation that is simply not recognized by the government".

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Written by

Don Bradman

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