Depositors of the alleged cryptocurrency pyramid set fire to the house of its organizer

In South Africa, angry investors of the alleged cryptocurrency pyramid set fire to the house of its organizer after the project stopped paying. It is reported by Coindesk .

Thus, the company of the former medical worker Sfelele Sgumza Mbati Bitcoin Wallet promised its clients 100 percent return on invested capital in the South African rand. Client deposits were supposed to be invested in cryptocurrencies.

According to media reports, Bitcoin Wallet was very popular – the scheme daily attracted about 2 million rands ($ 140,000) from hundreds of investors.

Nevertheless, last week the project announced the closure, and Mbata said that the company has no money for further payments. Later he spoke on the air of a local radio station, where he said that the accounts of some investors were subjected to a phishing attack.

The same evening, on social networks, information appeared that Mbata was arrested by the authorities. After that, about two hundred investors went to the police station to talk with an entrepreneur who had allegedly been hiding since the project was closed. Some of the investors asked the audience to restrain their anger, cherishing the hope of returning funds.

Please don't kill him now now. He still has my R16 000 Bantu .. #sgumza

– dope kid wenzi (@weezywenzile) July 10, 2019

However, the next day the media denied the information about the arrest. Then the crowd gathered at the house of the head of the pyramid and in the heat of passion set fire to the building.

Sgumza House on Fire – #BitcoinWallet #Ladysmith pic.twitter.com/xVXlU2mgnQ

– Inland Finder (@InlandFinder) July 10, 2019

Now the local police is collecting information about the affected investors, but the exact number of victims has not yet been established. The location of Mbati is also unknown. He probably went on the run.

Recall, recently the creator of the financial pyramid Coin Drop Markets Patrick McDonnell, deceived the gullible investors by almost $ 200 thousand, pleaded guilty in court and can now be sentenced to 20 years in prison.

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