South Africa sees another crypto Ponzi scheme

According to new reports, there has been an incident which saw the home of a Bitcoin Ponzi scheme operator burn down. This was as a result of millions lost by angry South African investors.

The Bitcoin Ponzi scheme goes by the name “Bitcoin wallets” and was operated by Sphele Sgumza Mbatha.

Investors pumped their hard earned money into this Bitcoin ponzi scheme that was organised by a ladysmith.

After discovering the scam, the angry investors took the law into their own hands and set the property of the Ponzi Scheme operator on fire.

Mbatha, the operator is a former paramedic promised participants 100 percent return on their investment after 15 days and reportedly deceived investors into believing that all was going well with their investments.

The physical office of “Bitcoin wallet” got shut down just a week after, claiming that a local municipality had instructed them to do so.

In an action to calm the nerves of the investors, Mbatha reportedly told his clients that the office was being shut down and that they would be dumping the project and will be moving to an online business instead.

According to reports they also made it clear to the frustrated investors that they would be requiring their personal details for the new site in order to get paid.

New was then released on July the 9th 2019 by the scam operator telling the local radio station Nqubeko FM, that this new Bitcoin wallet website had suffered a security breach and the hackers have been successful in stealing all investors funds from the website.

The operator later went out to turn off all communications and disappeared.

A community leader later declared that:

“There are claims that he has fled from Ladysmith, but no confirmation yet. It’s a sad occurrence because the poor may have been taken for a ride.”

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