People losing their cryptocurrency holdings to fraudsters is old news. Despite the infamous number of scams that took place in 2018 alone, there are still people who fail to see the warnings signs of the projects offering high returns.
People losing their cryptocurrency holdings to fraudsters is old news. Despite the infamous number of scams that took place in 2018 alone, there are still people who fail to see the warnings signs of the projects offering high returns. The crypto community has already seen exit scams, fake ICOs, fake Twitter profiles offering free tokens, and your average exchange and wallet hacks.
Most recently, BTC Global joined the long line of online fraud companies. While it is not surprising that it managed to trick its clients, it is overwhelming that it used simple and old technique, which should have been familiar to the community by now. The trading platform stole over $50 million from South African, American and Australian investors.
So far 27,500 have filed against BTC Global to the Directorate for Priority Crime Investigation in South Africa. “I have spoken to one of the investigators in our team and he has confirmed that this matter came to them about two weeks ago. There are in excess of 27‚500 complainants with many outside South Africa. The amount is over $50-million and could rise as more victims come forward,” said the spokesperson of the Directorate Captian Lloyd Ramovha.
What is known for BTC Global is that Steven Twain founded it. He has a successful trading experience and that fouled customers that the platform is indeed trustworthy. Despite his image, Twain was heavily criticized ever since the platform was launched, mainly because it offers tremendous returns. Clients could first buy BTC from the platform and then re-invest their funds on the promise they will get between 2% and 14% returns on a weekly basis. According to Times LIVE, investments varied from $1000 to $100.000.
At first, investors received dividends but since the middle of February, no one has ever heard from Twain. Ramohva commented, “The investigation is in its infancy. I also cannot say whether it is a Ponzi scheme. BTC Global is being investigated for contravening the Financial Advisory and Intermediary Services Act.”
BTC Global team states that they have made no contact with Steven Twain since February 18. That’s when he was sent regular payment details but did not respond. What is embarrassing is that regular employees now receive threats from investors, due to Twain’s actions.