The Bitcoin-based Ponzi scheme led to the initiation of the initiator house

A group of victims in a Ponzi scheme based on Bitcoin sued the home of the entrepreneur who stole their money. The incident took place in Ladysmith, South Africa, and was reported by the local newspaper.

Ponto Scheme based on Bitcoin

A former paramedic named “Sgumza” Spheels Mbatha created the Bitcoin wallet, which promised 100% investment profits. Investigators believe that Mbatha received over 2 million Rand (about $ 140,000) daily from his victims.

At one point, the minimum investment was raised to 5,000 ranks due to the large number of participants.

On July 4, the company shut down operations. Five days later, Mbatha announced to Nqubeko FM that some accounts were compromised by phishing. He argued that, unfortunately, Bitcoin Wallet does not have the necessary funds to return investors’ money.

Police investigate the situation

On the evening of July 9, social media circulated rumors that Mbatha was arrested and 200 people gathered in front of the police station to protest. The authorities argued that they had not made arrests because there was no official complaint from the victims.

Two days later, a group of protestors gathered around Mbatha’s house and burned it. TimesLIVE’s local television station said Ponzi victims decided to make their own justice.

Ladysmith police are currently investigating the situation and trying to find out how many people were deceived and total injury. Apparently, Mbatha disappeared without a trace.