LadySmith Ponzi Scheme Collapses

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Angry Clients Lose Everything As Ponzi Scheme Collapses

There are now reports that the popular investment Ponzi Scheme known as Bitcoin Wallet which has been centred in Ladysmith has finally collapsed.

Investors are being told conflicting stories that there is either nothing to pay them or to avoid logging into the companies online site due to it being hacked and data stolen. It is also being claimed that the entire business and all the money was ‘hacked’ and is now gone.

Whether it is data or just funds which are being stolen by anyone is debatable but either way, it seems that customers are no longer getting money back as the scheme came under increasing scrutiny by authorities and the local council.

‘the scheme was bringing in about R1.9 Million a day in the last month or so of operating’

CCN Markets estimate that the scheme was bringing in about R1.9 Million a day in the last month or so of operating. They also claim that the man who has been running the scheme, former paramedic Mr Sphelele Mbatha is actually the owner and not just a branch manager as he has recently been claiming. Perhaps the lack of other branches anywhere is something of a clue.

Mr Mbatha has been telling investors and the press that they must go online to collect their money and that the local branch has been closed under pressure from the local council.

Before closing down Mr Mbatha stopped taking any investments of anything less than R5000 at a time.

The local council confirmed that they asked Mr Mbatha for a business plan so that they could evaluate if the operation was above board (which they never received) but that they did not shut the shop down even though it has been the centre of huge crowds trying to “invest” their money. It seems this was indeed just an excuse to separate customers from a location to try and get their funds back shortly before the scheme collapsed.

Time To Run

Mr Mbatha himself is claiming to be unpaid and also missing funds he invested and not have any funds to give people. The surprising part is that he is or until recently was still in the area and had not disappeared as yet. He has also very much backtracked on his story of being the owner and now says he was really just the manager all along.

The now-abandoned shop is the scene of an angry crowd of disappointed investors who now want to try get their money back. They are also actively now looking for Mr Mbatha as can be seen in these videos below which can be found on Youtube:



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