Upset Protestors Alleged Sets Fire To Bitcoin Ponzi Scheme Perpetrator’s Home

by | Jul 12, 2019 | Bitcoin, Cryptocurrency, Cryptocurrency News

Bitcoin | Ponzi Scheme | Fire | Protestors

Paramedic-turned-bitcoin entrepreneur Sphelele “Sgumza” Mbatha’s home was set on fire by protestors, who were upset due to the  collapse of his Ponzi-like “investment scheme,”  as per Ladysmith Gazette.

Bitcoin Wallet, the company of Mbatha promised 100-percent returns to its investors by investing South African rand in cryptocurrencies. The firm shut down its operation on July 4, Mbatha believed to have been taking in more than R2 million, approximately $140,000, in cash deposits per day.

Mbatha appeared on Nqubeko FM in Ladysmith on July 9 to explain that a phishing scam has compromised some investor’s accounts. During an earlier radio appearance he went on to state that Bitcoin Wallets had “no cash to pay out.” That very evening the social media was full of rumors that Mbatha had been arrested.

Following which a 200 person crowd gathering in front of Ladysmith police station, demanding to see the Bitcoin Wallet’s manager. Investors were running high on tension as they were reportedly unable to contact Mbatha since its shut down. One of the investor pleaded for the crowd not overreact:

Reports from the following morning to indicate that Mbatha had not been arrested, as the police could “only act if investors open cases against the Bitcoin Wallets manager.”

On Wednesday afternoon, a hoard of crowd assembled around Mbatha’s home purportedly wanting to see the manager. Following the home’s ignition, an anonymous person on the scene was interviewd by TimesLIVE, stating that angry investors were seeking vigilante justice.

While it is not clear how many Ladysmith citizens invested in the operation,though at one point Mbatha stopped taking deposits less than Rs 5,000. The Police uploaded a complaints affidavit for those who have lost money in the scheme. They wrote:

“The completed form should then be handed in at the Ladysmith police station, together with your Bitcoin Wallets receipt, and a copy of your ID.

Mbatha appears to be on the run as of now.

Read more: Jerome Powell, Fed Chairman Compares Bitcoin to Gold

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