U.S. Markets open in 2 hrs 23 mins

This Bitcoin Scam in South Africa is Raking in Over $130,000 Every Day

Mark Emem
An African scam purporting to use cryptocurrency is duping investors. | Source: Shutterstock

 
By CCN Markets: A cryptocurrency investment scheme in South Africa’s Kwa-Zulu Natal Province has proven that having an unoriginal name, Bitcoin Wallet, never stopped any scam from raking in tens of thousands of dollars daily from the masses.

According to The Citizen, the cryptocurrency scam is operating from Kwa-Zulu Natal’s rural town of Ladysmith. The scam is estimated to be drawing in R2 million ($135,000) daily in a town of just over 60,000 people.

The investment scheme owned and operated by Sphelele ‘Sgumza’ Mbatha is promising returns of 100 percent within 15 working days. Initially, the lowest investment amount allowed was R100 ($6.74). However, it has grown so popular that no amounts below R5,000 ($337) are being accepted. And due to its immense popularity, long queues are forming at its offices. Some ‘investors’ are even being forced to begin queuing as early as 3 AM.

So How Is Bitcoin Wallet Making Money?

Per The Citizen, Sgumza had indicated in an interview with a community radio station that he was generating profits for his investors by buying and selling Bitcoin. He only charges a 10 percent administration fee.

While trading Bitcoin is certainly profitable for some, guaranteed returns of 100 percent every three weeks are unheard of. Besides, cryptocurrency prices do not move in just one direction but can reverse thereby exposing trend traders to losses.

Read the full story on CCN.com.