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

According to the National Consumer Commission, astir 4,000 South Africans who invested successful a bitcoin mining instrumentality supplier, Obelisk, whitethorn person participated successful a pyramid scheme. The committee said participants successful the pyramid strategy whitethorn person mislaid arsenic overmuch arsenic implicit $6 million.

Obelisk Used Social Media Platforms to Lure Victims

A South African user watchdog, the National Consumer Commission (NCC) precocious announced that Obelisk — a purported bitcoin mining instrumentality supplier — is successful information a pyramid strategy which has swindled millions of dollars from unsuspecting investors. The watchdog reportedly made the announcement aft it received complaints from investors who impeach Obelisk of defrauding them.

According to a Businesstech report, the 4,000 individuals who participated successful the concern strategy were convinced they were purchasing bitcoin mining instrumentality which could make changeless income for them. The machines outgo betwixt $18.75 and $24,850, the study added.

In a statement, the committee revealed Obelisk had lured victims via societal media platforms similar Facebook:

Participants were recruited connected societal media platforms, specified arsenic Facebook, wherever they were required to marque a minimal investment. Upon joining and making an archetypal investment, they were added to antithetic Obelisk Whatsapp groups.

The watchdog added immoderate investors had been fixed tiny returns successful bid to person them to put more.

Residents Warned Against Falling for Scammers’ Tricks

However, problems soon started erstwhile investors could not marque withdrawals. The study alleges that individuals who confronted the operators of the strategy were blocked and subsequently removed from the Whatsapp groups.

The NCC has reportedly confirmed receiving 25 complaints from investors who assertion to person mislaid $41,400. The watchdog, however, believes that arsenic galore arsenic “4,000 participants from 8 Whatsapp groups” mightiness person mislaid an equivalent of $6.18 million.

According to Thezi Mabuza, the NCC’s acting commissioner, South African residents indispensable debar being tricked by concern schemes that committedness important returns successful a precise abbreviated abstraction of time.

“We implore members of the nationalist to spare themselves from heartache and suffering by not joining these deceptive schemes. History is replete with galore examples of these schemes that inevitably collapsed, often leaving a way of fiscal distress, breached trust, friendships, and adjacent breached families,” Mabuza said.

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