There’s an old saying which goes, “You play with fire, you get burnt.” Well, that is precisely what happened to Sphelele ‘Sgumza’ Mbatha. The man was responsible for conducting a Ponzi scheme.
This man didn’t just have one house, he had various building assigned to his name. Sphelele has claimed many times that he wasn’t the one in charge, and had apparently invested in the scam himself.
The scheme was carried out in Kwa-Zulu Natal’s town of Ladysmith. Watch the footage here which shows a section of the attack on Sgumza’s house.
@Abramjee A investors in a ‘pyramid scheme’ called Bitcoin Wallet own by Sphelele known a Sgumza in Ladysmith, KZN, burned his home. This after he closed his offices. @IOL and @LdyGazette & reported extensively about this scheme. pic.twitter.com/8EtSFi7uCi
— StoneCold (@stonezn) July 10, 2019
On Tuesday night, the angry investors looked for Sphelele at Bitcoin Wallet’s offices after news of the business being closed was made public. Those who were employed by this famous scammer got beaten up and then had to be dragged to the police station.
A popular nickname for Mbatha was ‘Lord of Ladysmith’. He had an extravagant lifestyle which he loved to exhibit in front of his investors. The latter group thought they’d be rich after a span of two weeks.
Sgumza had claimed that Bitcoin Wallet’s website was a victim of a hack attack. This had led to agitations against him, which have now turned violent.
He is the director of Bitcoin Wallets Achievers and still alleges that he is innocent, as he was just a worker. The Hawks who are South Africa’s special crimes police unit have begun their investigation.
On the other hand, Bitcoin aka “the real deal” is priced at $11,520.89 according to the latest data available. A decline rate of 1.24% was observed. The trading volume recorded is $33.80 billion approximately.