Bitcoin ‘Ponzi Scheme’ Leaves Thousands of South Africans Hoaxed

It might be pretty official after this that Africans, in general, are in dire need of serious education about the crypto world as a whole and how to best secure their funds when they decide to invest in the industry be it a digital currency of any brand.

Well, months after Kenyans became victims of a Bitcoin-based pyramid scheme, Velox 10, making them lose millions of shillings, citizens of South Africa may just be the latest victims in a similar scheme based on the same currency, Bitcoin.

According to a local report from the country, locals of Ladysmith, a city located 365 kilometres south of Johannesburg, were alluded into investing in a company called Bitcoin Wallet.

Like any company seeking investors, it promised big returns based on the level of contribution each gave. As a response, reports claim that people made queues all through the night outside the company’s offices making sure they each get a chance to invest their hard-earned income.

However, the investors had received warning of the scam through rumours that were gradually spreading last month of a possible cryptocurrency pyramid scheme that was promising 100% returns in a span of 15 days that seemed almost impossible but with the crypto world, you never know what to expect. At that very time, the suspected scam was alleged to be generating a daily income of $135,000 (close to Kes. 14 Million).

Last week saw local police report of investigations on a prospective swindle in that very city but they had not gotten to a conclusion that the company was Bitcoin Wallet. The report further referenced reports from African News Agency that the company was being run by a local man who had conned residents of being a paramedic for 11 years, Sphelele “Sgumza” Mbatha.

Africans have a preceding reputation of being as resilient as possible, latest reportsclaim that hundreds of residents that had invested their money in the company were still lining up out of the offices to find out what had really happened to the cash and that Sgumza is still expected to address the masses about the situation.

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