Thousands of people in South Africa may have
been duped in what’s thought to be a Bitcoin
BTC Ponzi scheme.

According to a local report, residents in
Ladysmith, a city 365 kilometres south of
Johannesburg, were enticed to invest in a
company called Bitcoin Wallet. The company
promised easy and big returns on investments.

People are reported to have queued overnight
and slept outside Bitcoin Wallet’s offices in a
bid to invest their hard-earned cash.

Rumours about possible wrongdoing surfaced
in June after local outlets reported about a
possible cryptocurrency Ponzi scheme, which
promised returns of 100 percent in 15 days. At
the time, the potential scam was thought to be
generating R2 million ($135,000) per day.

Police said on Wednesday that they were
investigating a possible Ponzi scheme in
Ladysmith but did not confirm whether it was
related to Bitcoin Wallet.

African News Agency (ANA) reported last
month that the company was run by Sphelele
“Sgumza” Mbatha, says the local report.

According to ANA, Mbatha said in an interview
with a community radio station that his
business was legit. Deposits made into Bitcoin
Wallet were taken and re-invested in the
cryptocurrency, he claimed.

The latest report by the Ladysmith Gazette says
hundreds of people are currently waiting
outside Bitcoin Wallet’s offices to find out what
happened to their money. Sgumza is reportedly
expected to address the crowds soon.