The optimism of the crypto community amid Bitcoin’s bull run that recently breached ,000 mark, was short-lived, owing to the uncovering of a new Ponzi scheme in South Africa that duped investors of 5,000 on a daily basis.
While BTC’s stellar performance in June tempted the crypto enthusiasts to try their hands in the latest scheme, the drive resulted in a heavy inflow of capital as it attracted huge sums of money toward the crypto firm named Bitcoin Wallet. It is important to note that the trading firm had committed to provide 100% return over the user’s investment.
This malpractice initially raised a red alert after the word spread that users could get 100% return within 2 weeks spread. It was reported by African News Agency [ANA] that Bitcoin Wallet was the brain child of Sphelele “Sgumza” Mbatha.
Soon after, local officials busted the Ponzi scheme after the legitimacy of the business credentials raised concerns among the nation’s legal bodies. Also, the plight of many locals became national headlines after Alfred Duma, one of the major municipality bodies in South Africa, pointed out the unjustified actions of the energetic crowd.
The official report highlighted the violation of municipal laws, stating that the legal department was also waiting for Mbatha to provide the administration with documentation that supported that he was allowed to trade like this.
To get their increased amount of capital, generated from investing in digital gold, many individuals waited for long hours, and thus started camping on the local streets, according to the Independent Online. As an aftermath of the situation, the enthusiastic and oblivious crowd disrupted the life of locals, causing traffic problems along with messing streets’ cleanliness.
Mbatha orchestrated the entire conspiracy by intelligently tailoring the Bitcoin Ponzi scheme. He played a masterstroke by trading the fraudulent BTC earnings at higher trading values, collected in Bitcoin Wallet.