According to reports coming in from South Africa, many investors who invested in BTC global group might have lost their money. The total amount is around $ 50 million.
Disappearance of the manager:
The sole manager in the group was Steve Twain. The investors, however, had received regular profits from him. In February 2018, he disappeared altogether. Also, there was a press release from the group which clearly stated that they have failed to trace him.
The total number of investors was 27,500. They were not just limited to South Africa. Investors from Australia as well as the United States also invested their money with this particular group. The regulatory authorities are trying to track down the fund manager. According to Lloyd Ramovha who is with the Serious Commercial Crimes Unit, the investigation is in the initial stages. He cannot confirm whether the investment solutions by this group were a Ponzi scam or not.
Most of the investors deposited the funds into a single wallet address. Also, the investigator believes that the amount involved in the scam can increase further. The reason for this is the under disclosure by many of the investors. Many investors have invested over $ 100000 in the fund. This is the reason why this amount can easily increase further.
Many of the clients of the fund have already engaged lawyers in order to take legal action against the group. Prima facie it seems like a case of theft. However, only when more details emerge after the investigation, it will be clear what is the nature of the scam. According to the administrator of the group, Cheri Ward, there was always a risk in investing with the group. They did not guarantee anything to the investors. This is the reason why many of the investors are now worried that they might not see their money at all.
Such scams are not unheard of in the cryptocurrency space. In many of the cases, investors have lost millions of dollars. Also, in many cases, the amount raised by ICOs also resulted in a loss for most of the investors. The reason for this being the disappearance of the companies who raised the money. This is the reason why crypto space seems to be a pretty risky space to invest any kind of money in. It remains to be seen whether this news will deter the investors or not.
David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.
