Proudly sponsored by

South Africa investigates R1bn bitcoin Ponzi scam

The investigation involving BTC Global, allegedly defrauded investors of R1 billion.
Bitcoin scam involving BTC Global. Picture: Bloomberg

South African authorities are investigating an alleged cryptocurrency scam that defrauded investors of R1 billion ($80 million) with promises of huge returns that never materialised, police said on Friday.

The fraud investigation involves a company named BTC Global, which told clients they would earn 2% per day, 14% a week and 50% in a month, the police said.

A search for the company on the internet showed its services had been suspended.

The website lists Steven Twain as the “primary trader”. A request for comment by Reuters sent to an email address listed on the website as belonging to Twain received no response.

“Members of the public are believed to have been targeted as part of the scam and encouraged by agents of BTC Global,” the police said in a statement.

“Some of the investors got paid in terms of the agreement. However, the payments suddenly stopped.”

Local technology news website had reported in March that more than $50 million was lost by investors in BTC Global.

“This may prove to be the tip of the iceberg with potentially thousands more yet to discover they’ve lost money,” police investigator Yolisa Matakata said.

The investigation follows a case this week where kidnappers demanded a ransom in bitcoin of nearly $120 000 to release a South African teenage boy.

On Thursday South Africa’s central bank said it was in the process of determining whether cryptocurrencies complied with its financial surveillance and exchange control regulations.


Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.


Wow, to think my neighbour drives an SUV branded BTC Global, oh boy. I will be asking him if I can invest just to see his reaction.

Whenever someone tells you an “investment” will earn 50% a month, RUN AWAY!!!

It’s amazing how people just never learn from mistakes. Even if thousands more of these schemes destroy countless lives, the next scheme will attract just as many people as ever.

It’s almost like socialism. It can destroy one nation after another, but countries will keep lining up to try it, just ONE MORE TIME.

Am I surprised ? Not at all!

Methinks, you have got a much bigger chance to get infection froma meat eating ”bacteria” in your nose, than to earn 50 % on these types of UN-regulated coins (that doesn’t even form part of any type of asset class)

Bitcoin and all Crypto currencies both local and offshore should be regulated by our tax authorities and should also follow stringent standards and terms of investment. This will soon put a stop to scams like this.

No it won’t. There are many fools hell-bent on being defrauded and scammed, and more born every minute. Fraudsters know this and comply eagerly.

End of comments.





Follow us:

Search Articles:Advanced Search
Click a Company: