Altcoin News: The Crowd Set Fire to the Home of the Organizer of the Crypto-Pyramid After the Termination of Payments

July 12, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The protesters set fire to the house of the former medical worker Sphelele “Sgumza” Mbatha after the pyramid-like “investment scheme” organized by him stopped paying money.

Mbatha’s company, Bitcoin Wallet, promised a 100 percent return on investment in South African Rands, which were supposed to be invested in cryptocurrencies. According to available information, before interrupting work on July 4, Mbatha collected more than 2 million Rands or $140,000 per day.

On July 9, Mbatha spoke on the radio of the city of Ladysmith, where he reported that the accounts of some investors had been hacked using phishing. Earlier, also on the radio, he stated that Bitcoin Wallet “has no money for payments”.

The same evening, rumors appeared in local social networks that Mbatha was arrested, after which a crowd of 200 people came to the local police station to see the manager of Bitcoin Wallet. Passions ran high, as investors could not contact Mbatha since the closure of the company.

One of the investors begged the audience not to overdo it in the hope that he would manage to return the money invested.

By the next morning, information was leaked to the media, according to which Mbatha was not arrested, so the police could act only on the basis of investors’ statements.

On Wednesday afternoon, a crowd gathered around the Mbatha’s house of again, presumably to talk to him. The local newspaper reported that the participants decided to make a mob and set fire to the house.

How many residents of Ladysmith have suffered from the actions of the organizer Bitcoin Wallet is unknown, but at some point, he stopped accepting deposits of less than 5,000 Rands.

The police asked investors to report on the amount of investments, but he, of course, did not — Mbatha is currently on the run.

Author: Marko Vidrih