South Africa to Probe $80 Million Cryptocurrency Scam

South African authorities said last Friday that it has begun an investigation into an alleged bitcoin scam that stole around 1 billion rand ($80 million) from investors who were promised huge returns.

It was revealed that a company called BTC Global had promised clients earnings of around 2% per day, 14% a week, 50% percent in a month.

The scammer’s website, which lists a certain Steven Twain as “primary trader”, was immediately suspended, leaving a huge number of investors without receiving any payment.

The investigation comes shortly after an announcement by South Africa’s central bank which said that it was looking into whether digital currencies complied with its financial surveillance and exchange control regulations.

Source: Reuters