Now Ladysmith Ponzi Scheme Goes Virtual

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Ponzi Scheme Now Hides Location

As the horror and disbelief that surrounds the growing Ponzi scheme being run in Ladysmith continues, a new twist presents clients with a new layer of misinformation.

The seeming Ponzi scheme being run in the small town of Ladysmith has garnered so much media attention and has grown so out of control that the owner has announced that he will no longer have physical offices.

100% Return in 15 Days

The scheme, which offers a too good to be true return of 100% in 15 days, is called Bitcoin Wallet but has little or nothing to do with bitcoin other than to appeal to consumers sense of greed. Bitcoin, an online cryptocurrency, has a reputation for making big returns (and big losses) in years gone by.

The owner Sphelele “Sgumza” Mbatha has been raking in the cash since his so-called investment scheme began several months ago. He supposedly only takes a 10% cut for his services but a growing bank balance of funds could be at risk as more and more consumers add more and more funds as the hysteria grows.

Cracks Begin To Appear

The National Credit Regulator (NCR) has made it known that the NCR credit provider certificate that was formerly displayed at the schemes head office in Ladysmith is not legitimate. They would now, however, have a hard time raiding the premises along with the SAPS since the owner has already packed up his office and is now harder to find than ever.

Going Virtual

Over the past weeks, people trying to get in on the action have been sleeping on the street and in nearby bushes outside the offices in an effort to get to the front of the long queues of thousands of desperate clients.

Some clever homeless people were recently even offering a ‘hold your spot in the queue’ service waiting for people overnight in the queue for a few bucks.

Now the owner has told people that he has been asked to move by the local Municipality.  He claims that all the people queuing is stated as the reason for his having to move from the site. This does not seem to be accurate since the Municipality has outright refuted this claim.

Catch Me If You Can

The scheme has announced on its website that it is now going to be operating online only in an effort to give more people access faster and cut down on all the queues.

Is this a cunning step to hide the owner’s location and still take more people money or is it the next step in making a run for it before the authorities close in or the unsustainable nature of such a scheme catches up with Mr Mbatha, who was working as a paramedic prior to the recent boom in clientele?

‘The scheme has announced on its website that it is now going to be operating online only’

Local police and the media have been urging consumers not to get caught up in the madness surrounding the scheme and potentially lose all their money.

Research into such schemes by the DTI and NCR reveals that in Ponzi schemes only 20% of investors actually get their money back. It is unclear if the research includes the current Ladysmith BitCoin Wallet Scheme or not.





Please note: at present no authority has proved in court or through investigation that the scheme is illegal and a Ponzi scheme though it does have all the hallmarks of such a scheme.




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