Sphelele ‘Sgumza’ Mbatha, who was the manager of the Ponzi scheme known as Bitcoin Wallets, is still on the run following the havoc he caused in Ladysmith that left many residents penniless.
The ‘notorious’ Bitcoin Wallets money-making scheme set up shop in the heart of the Ladysmith CBD, with promises that investors could double their money. The Ponzi scheme didn’t last too long before crashing and closing, with Sgumza hastily fleeing town before furious investors got their hands on him.
According to the provincial communications manager of the Hawks, Captain Simphiwe Mhlongo, Covid-19 is hindering them from arresting Sgumza.
“We can confirm that the case is still under investigation and is at an advanced stage, although we are experiencing some challenges due to the Covid-19 pandemic,” said Captain Mhlongo.
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Once a paramedic who transformed himself into a ‘Bitcoin entrepreneur’, Sphelele ‘Sgumza’ Mbatha left his home in the Tsakane area last year following the collapse of his investment scheme that promised investors 100% returns if they invested South African rands in crypto currencies.
Investors flocked to town from far and wide (even from other provinces) to invest in the ‘too good to be true’ scheme. Soon the queues of people were getting longer and longer, snaking through the Ladysmith CBD.
“I have not recovered properly from what Sgumza did to me. After him, I invested my money in another Ponzi scheme called ‘Mnotho’, which also left me high and dry. After all these Ponzi schemes , there was a protest to get rid of Mayor Vincent Madlala, which caused a total shutdown in Ladysmith. Thus I was unable to go to work. Now there is Covid-19. My life has turned into a nightmare because, as of now, I am struggling to provide for my family,” said Ethel Shezi, one of the ‘victims’ of Sgumza’s money-making scheme.
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