South African Police Investigates $80m Scam Loss To Bitcoin Scam

South African Police have revealed that the Authority have commence the investigation into an alleged cryptocurrency scam that ripped off investors of 1 billion rand ($80m) with promises of huge returns that never materialised.

A company, BTC Global, which is at the centre of the investigation had promised investors they would earn 2 percent per day, 14 percent a week and 50 percent in a month, the police said.

Reports has it that the operations of the company have been suspended.

The website lists Steven Twain as the “primary trader”. A request for comment by Reuters sent to an email address listed on the website as belonging to Twain received no response.

“Members of the public are believed to have been targeted as part of the scam and encouraged by agents of BTC Global,” the police said in a statement.

“Some of the investors got paid in terms of the agreement. However, the payments suddenly stopped.”

Mybroadband.co.za, a local technological news platform have earlier revealed that more than $50 million was lost by investors in BTC Global.

“This may prove to be the tip of the iceberg with potentially thousands more yet to discover they’ve lost money,” police investigator Yolisa Matakata said.

The investigation follows a case this week where kidnappers asked for a ransom in bitcoin of nearly $120,000 to release a South African teenage boy.

On Thursday South Africa’s central bank said it was in the process of determining whether cryptocurrencies complied with its financial surveillance and exchange control regulations.