Fun

Report: BTC Mining Investment Platform Declared Pyramid Scheme by South African Consumer Watchdog

News Feed - 2022-10-23 06:10:54

Report: BTC Mining Investment Platform Declared Pyramid Scheme by South African Consumer Watchdog


According to the National Consumer Commission, about 4,000 South Africans who invested in a bitcoin mining equipment supplier, Obelisk, may have participated in a pyramid scheme. The commission said participants in the pyramid scheme may have lost as much as over $6 million. Obelisk Used Social Media Platforms to Lure Victims


A South African consumer watchdog, the National Consumer Commission (NCC) recently announced that Obelisk — a purported bitcoin mining equipment supplier — is in fact a pyramid scheme which has swindled millions of dollars from unsuspecting investors. The watchdog reportedly made the announcement after it received complaints from investors who accuse Obelisk of defrauding them.


According to a Businesstech report, the 4,000 individuals who participated in the investment scheme were convinced they were purchasing bitcoin mining equipment which could generate constant income for them. The machines cost between $18.75 and $24,850, the report added.


In a statement, the commission revealed Obelisk had lured victims via social media platforms like Facebook: Participants were recruited on social media platforms, such as Facebook, where they were required to make a minimal investment. Upon joining and making an initial investment, they were added to different Obelisk Whatsapp groups.


The watchdog added some investors had been given small returns in order to convince them to invest more.


Residents Warned Against Falling for Scammers’ Tricks


However, problems soon started when investors could not make withdrawals. The report alleges that individuals who confronted the operators of the scheme were blocked and subsequently removed from the Whatsapp groups.


The NCC has reportedly confirmed receiving 25 complaints from investors who claim to have lost $41,400. The watchdog, however, believes that as many as “4,000 participants from eight Whatsapp groups” might have lost an equivalent of $6.18 million.


According to Thezi Mabuza, the NCC’s acting commissioner, South African residents must avoid being tricked by investment schemes that promise significant returns in a very short space of time.


“We implore members of the public to spare themselves from heartache and suffering by not joining these deceptive schemes. History is replete with many examples of these schemes that inevitably collapsed, often leaving a trail of financial distress, broken trust, friendships, and even broken families,” Mabuza said.


Register your email here to get a weekly update on African news sent to your inbox:

Tags in this story Bitcoin mining, bitcoin pyramid scheme, National Consumer Commission, obelisk, Social Media, Thezi Mabuza


What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. India Freezes Additional Bitcoin Amid Mobile Gaming App Investigation REGULATION | 2 days ago Japan to Relax Cryptocurrency Listing Rules REGULATION | 3 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleNigerian Presidential Hopeful’s Party Says It Will Review Country’s Blockchain and Crypto Policy if Elected Next articleInterview With Evan Luza, Cool Cats Co-Founder and Advisor to Bitcoin․com Verse NFT Collection Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand"


Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. "We continue to see demand, particularly from young investors, for access ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike

News Feed

New Draft Law in Uruguay Could Legalize Crypto as Payment Method
New Draft Law in Uruguay Could Legalize Crypto as Payment Method A new draft law introduced to the Senate in Uruguay could regulate cryptocurrency transactions,
‘Pharma Bro’ Martin Shkreli says he helped create the DJT token
Felix Ng8 hours ago‘Pharma Bro’ Martin Shkreli says he helped create the DJT tokenIt comes amid $1.7 million in Polymarket bets on whether Donald Trump or his family members are behind the DJT token.5702 Total views2
Marcel Pechman3 hours agoCardano price turns bullish, but is there substance to the ADA rally?Cardano’s DeFi footprint and network activity show an uptick in users, but will it be enough to sustain ADA’s recent bulli
Bitcoin Treasury Firms Are This Cycle’s Bubble, Experts Warn
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
How can NFTs transform daily life?
Anthony Georgiades11 hours agoHow can NFTs transform daily life?By now, hearing "NFT” in any context evokes some sort of reaction — good or bad.672 Total views4 Total sharesListen to article 0:00Innovation Circl
Is Germany selling its BTC? Arkham-tagged wallet sparks curiosity
Prashant Jha12 hours agoIs Germany selling its BTC? Arkham-tagged wallet sparks curiosityThe German government-labeled wallet held 50,000 BTC since February and moved out 6,500 BTC on June 19.3100 Total views11 Total sha
Decentralized AI is key to more unbiased AI algorithms — Masa co-founder
Zoltan Vardai10 hours agoDecentralized AI is key to more unbiased AI algorithms — Masa co-founderGoogle’s Gemini AI has faced recent outrage after generating historically inaccurate imagery and biased results. Decent
Tom Blackstone6 hours agoTether attestation shows cash and cash equivalents of 86% as loans declineTether’s newest reserve attestation shows the highest-ever percentage of cash equivalents, with most reserves consistin
Litecoin Whale Deposits 500,000 LTC To Binance: Price Decline To Extend?
Este artículo también está disponible en español. On-chain data shows a Litecoin whale has made a huge deposit to the cryptocurrency exchange Binance in the past day, a s
Nixon ended gold standard 53 years ago today — WTF happened in 1971?
Christopher Roark10 hours agoNixon ended gold standard 53 years ago today — WTF happened in 1971?In his 1971 speech ending the gold standard, Richard Nixon promised to stabilize the dollar, but instead, nearly everythi
Terraform Labs to sell 4 companies as part of wind-down
Jesse Coghlan3 hours agoTerraform Labs to sell 4 companies as part of wind-downThe bankrupt Terraform Labs is looking to sell four of its companies as it winds down operations to comply with its multi-billion SEC deal.87
Indian Government to Make Additional Changes to Crypto Bill: Report
Indian Government to Make Additional Changes to Crypto Bill: Report The Indian government is reportedly making additional changes to the country’s crypto bill. The bill, whi