Ladysmith business closes, but is it a ponzi scheme?
The question you need to ask when investing in a possible ponzi scheme is: Can I afford to lose it all?
We wanted to pose the following questions to a man who identified himself as Siyabusa, the manager of the Forex Trading business, which grabbed the attention of Ladysmith residents.
How does Forex Trading work? Is the business registered with the National Credit Regulators (NCR)? What is the difference between Forex Trading and Bitcoin Wallets? What assurance can he give to Ladysmith residents that they will not once again be left penniless?
This is what he had to say in response to the above questions: absolutely nothing! This despite agreeing to an interview with the Ladysmith Gazette.
Forex Trading was initially situated at Suite 5, Residency Business Park, and then moved to Murchison Street.
Long snaking queues of people patiently waiting to invest their money in the new money-making scheme were seen just about every day in town, and then… The business closed its doors on Wednesday (July 22), leaving its investors fearing the worst – that it was indeed a ponzi scheme that had collapsed and they had lost their money.
A ponzi scheme will offer fantastic returns and initially meet the demand but, sooner or later, the cash coming in is not enough to pay the people wanting to withdraw their money, resulting in an inevitable collapse of the scheme.
Also read :Ponzi scheme collapses and closes up shop?
Also read: 27 confirmed deaths of Covid-19 patients in Uthukela District
Forex Trading has said that the coronavirus (Covid-19) has hit staff members and that it will be closed for 10 days as a result. Anxious investors will now have to wait out those 10 days and see if the business opens again…
Click to receive news links via WhatsApp. Or for the latest news, visit our webpage or follow us on Facebook and Twitter. Join us there!
