A South African company BitCaw Trading Company is currently under investigation for allegedly defrauding about 28,000 members of the public of approximately $80 million (1 billion Rand). The South African Police unit recently began an investigation about the dealings of the company, the South African police unit has made several inquiries from both investors who have lost their money as well as the staffs and agents of the company.
Also known as BTC Global, the company promised their investors interest of 2% daily, 14% weekly and 50% every month. Apart from these timely profits, referring new investors also fetches an additional 4% bonus. The company initially fulfilled their promises and paid their investors as agreed, but these payments unexpectedly stopped after a while, leaving thousands of investors confused.
A South African News Agency, mybroadband.co.za reported in March that many BTC Global investors had lost over $50 million but the company discredited the news, BTC Global agents continued to lure people and new investors kept coming in.
According to BitCaw Trading website, the company has been helping people to create wealth through bitcoin securely and correctly.The founder of BitCaw Trading, Andrew Caw, explained that the company was not set up by BTC global, he also noted that
“BitCaw Trading was not involved in the BTC Global scam, and we are shocked to see our name connected to it.”
A Police investigator, Matakata Yolisa said that “this may prove to be the tip of the iceberg with potentially thousands more yet to discover they have lost money.” Shortly before this case happened, a group of kidnappers of a teenage boy in the country demanded bitcoin as a mode of payment of his $120,000 ransom. The Central bank of South Africa recently said that plans are in place to determine whether or not cryptocurrency obeyed its financial and exchange control regulations.