Hawks warn of dodgy Bitcoin investment schemes

The Hawks are tracking a suspected fraudster who's possibly made off with millions in Ladysmith.  #DStv403

JOHANNESBURG - The Hawks are warning the public to be wary of dodgy Bitcoin investment schemes.

They're tracking a suspected fraudster who's possibly made off with millions in Ladysmith. 

READ: Police bust Bitcoin miners for stealing $3mn in electricity

Lloyd Ramovha of the Hawks says If anything looks too good to be true, it usually is.

"The repo rate stands at about 10.25 basis points. So if any investment scheme claims to surpass that, then that is a red flag."

The Hawks are also looking into similar Bitcoin investment schemes in Newcastle.

Once a working-class resident, Sphelele "Sgumza" Mbatha's status was quickly elevated to that of a wealthy financial guru, revered by his neighbours.

READ: Trump says cryptocurrency is 'not money'

That trust ran out earlier this month when Bitcoin Wallets collapsed - and Mbatha has not been seen since.

Now, those who once queued up outside his office for days hoping to double their money can be found at the local police station.

They're filling out affidavits as part of a fraud case being investigated by the Hawks.

Police are warning the public to be careful.

Source
eNCA