|Mar 06, 2018 10:20 PM||By: Guest Author | 11777 Views|
27,500 people have lost their bitcoin in one of the greatest scams that has ever known place in South Africa. South African officials have launched an inquiry to find out the perpetrators behind the scam.
It has been stated that investors have deposited different amounts of cryptocurrency into a single wallet in the Bitcoin investment group, BTC Global. Weekly results of 14% of their expenses were promised by the company.
Captain Lloyd Ramovha, spokesperson for Directorate for Priority Crime Investigation, established that authorities are trying to track down the criminals that devised the crime, as they broke the Financial Advisory and Intermediary Services Act. It has yet to be established whether the scammers included are South Africans or not.
Even though a small amount of the investors made some interest in the initial phases, investigators declared that thousands of people lost all their holdings after the company dissolved in February, in a way that is appropriate to Ponzi schemes. Some of the victims include people that have spent their entire life’s savings.
Mike Bolhuis, a secret investigator whose job is investigating economic sins also assured victims that the scammers will be brought to justice. He also told people who have lost their money in this project, to clear up cases of lying at the police station, as it will help the investigation process.
This incident reinforces the belief that fraudsters use the services provided by the anonymity of cryptocurrency transactions to defeat the system.
Microsoft founder, Bill Gates who is suspicious about Bitcoin’s anonymity clause, has stated that Bitcoin’s anonymous characteristic will prevent the government’s ability in handling money laundering, terrorist funding, and tax avoidance.
In an effort to stop similar events from happening, countries such as China and South Korea have halted trading anonymously with Bitcoin, and have issued laws that obligate exchange and trading firms to verify their customers; laws that are intended to offer some level of security to investors.