Now, South Africa has been taken by storm by what clearly looks like a typical Ponzi scheme. A cryptocurrency company by the name of Bitcoin Wallet has been enticing the population of Ladysmith, a city in South Africa to deposit their hard-earned money with them with promises to make them 100% of their deposit within two weeks time.
The scheme has become extremely popular, to a point where people were sleeping outside the Bitcoin Wallet office in order to get on the crypto hype as soon as possible. According to local police reports Bitcoin Wallet was generating as much as $135,000 per day in revenue.
However, it’s been 15 days for some investors and now they’re spending their time outside of Bitcoin Wallet’s offices waiting for an answer from the owner about what happened to their funds. Even if they do get an answer from the owner, assuming he’s still in South Africa, it’s going to be disappointing.
According to local police, they’ve conducted investigations about a potential Ponzi scheme in Ladysmith but were not able to come up with any tangible evidence against Bitcoin Wallet, therefore the investors have to sit outside the offices and wait for the confirmation. Many investors are accusing the police of conspiring with Bitcoin Wallet and trying to cover up the crime, but these are just accusation of frustrated investors, which are yet to be confirmed.
When did the scheme start and what could happen next?
South Africans were a good target
Yaliwe SOKO, United African Blockchain Association Chairperson commented on recent scam activity:
“Such schemes target rural areas where people are uneducated on crypto and blockchain. This highlights the importance of education in Africa. By now, people are looking for a quick escape from poverty and get into traps.”
When it comes to Bitcoin Wallet, it’s a much more open business, but clearly lacks transparency. Hardly such schemes could prove to be a legitimate business, but it’s highly unlikely to make 100% profits in 15 days regardless of one’s experience, and especially keeping it consistent over hundreds of investors. It could be yet another fraud and,unfortunately, amid regulatory breaches, Africans are to face these activities just like the rest of the world did for several years.
Image courtesy of IOL.co.za