South African Police Investigate Alleged Crypto Ponzi-Scheme Involving 28,000 Investors

South African Police are pursuing an alleged major cryptocurrency investment fraud, according to a police statement released yesterday, May 25.

According to the statement, over 28,000 investors are said to have suffered losses exceeding 1 bln rand.

" encouraged by BTC Global agents to invest with promises of 2% interest per day, 14% per week and ultimately 50% per month.

Some of the investors got paid in terms of the agreement.

Based on these unrealistic promises, a 4% referral program, and other warning signs, marketing agency SEO Spark last year contended that BTC Global was a fraudulent Ponzi-scheme, predicting investor losses.

BitCaw Trading has denied the company has had any involvement with BTC Global, telling Bloomberg that "BitCaw Trading [] do[es] not manage third-party money or offer any kind of investment [] We are shocked to see our name connected with."

The Hawks' Lieutenant general Yolisa Matakata is calling on any further affected investors to come forward.

"This may prove to be the tip of the iceberg with potentially thousands more yet to discover they've lost money," he said in the statement.

Yesterday, May 25, Cointelegraph reported that South Africa's central bank has chosen to call cryptocurrencies "Cyber-tokens" because they "Don't meet the requirements of money."

The U.S. government has moved to more actively educate investors against crypto-related fraud, specifically involving Initial Coin Offerings.