A new scam has been uncovered that reportedly has stuck as many as 27,000 people across South Africa, Australia and America. BTC Global is now being investigated by South African serious commercial crimes unit, the Hawks.
The site for BTC Global now displays a page that states that trading has been suspended stating that their ‘master trader’ Steven Twain cannot be located.
It has emerged that as much as $50 mln was netted by the scam which saw thousands investing cryptocurrency into an online wallet address.
The Hawks
The South African investigating authority, known as the Hawks, are now investigating the scam which has affected many South Africans.
Hawks spokesman Captain Lloyd Ramovha on Thursday confirmed that the serious commercial crimes unit was investigating complaints against BTC global.
"I have spoken to one of the investigators on 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 mln and could rise as more victims come forward‚" said Ramovha. He could not confirm if the scam artists were South Africans.
Duped South Africans
Speaking to a local publication in South Africa, TimesLIVE, many South Africans admitted that they invested between $1,400 and $120,000 with BTC Global as Forex and commodities trader “Steve Twain” was a "master trader."
They received inconsistent weekly payouts until Twain disappeared two weeks ago. They now believe that Twain did not exist.
"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‚" Ramovha said.
Alex Dovbnya
Vladislav Sopov
Dan Burgin