SA Crypto Ponzi scheme says they can’t pay investors

Bitcoin Loophole scam

It seems that the worst has come to pass in South Africa as a representative of Bitcoin Wallet came out with an announcement in an interview that there is no cash to give out to the investors.

Cryptopolitan reported Thursday the shady nature of Bitcoin Wallet as it was promising investors as much as 100% return on their investments within 15 work days.

By the time the article was published on Cryptopolitan, those 15 work days had already passed for multiple investors and now they’re being told that there are no profits to be found.

Sphelele “Sgumza” Mbatha, who was the face of the company announced that he too is a “victim” of Bitcoin Wallet as he had invested a significant sum with the company.

The scam got out of hand so much that the company demanded investments no less than $350, and that’s quite a lot of money for a country like South Africa.

Nevertheless, Mbatha will be put under investigation by the Financial Services Conduct Authority, the local financial regulator as the signatures on some of the Bitcoin Wallet documents seem to have been forged.

The investors are continuing to spend their days outside of Bitcoin Wallet’s office in anticipation of at least getting their money back. However, it’s quite likely that those funds have left South Africa for a while now.

As reported by Cryptopolitan, Bitcoin Wallet was promising investors 100% returns in just three weeks by investing their funds in the cryptocurrency market.

Seeing how there were indeed some major price movements in the crypto market in the last three weeks, it could have been slightly convincing, but the moment the company promised so many profits in such a small time it should have been an immediate red flag.

We now wait for the investigation to begin and hopefully reimburse all of the victims of Bitcoin Wallet.

Giorgi Mikhelidze

Giorgi Mikhelidze

Georgian-born blockchain enthusiast Giorgi leverages his software development background for on point market commentary and analysis. A brief stint with Finance Makers and he's now covering crypto news for high authority websites with the tip learned from past experience, "Whenever you see people talking about the weakness of your idea, don't see it as criticism."

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