Bitcoin 'scammers' BTC Global still under investigation, say Hawks

The Hawks have denied social media reports that those implicated in the biggest Bitcoin scam to hit South Africa have been cleared.

In a press statement, Hawks spokesperson Brig Hangwani Mulaudzi said the claims had stemmed from a social media page named BTC Global Recovery.

"We would like to state on record that such inferences are devoid of any truth and are aimed at disheartening the victims to lose faith and stop co-operating with the probe. The investigation into BTC Global's alleged fraudulent activities is still ongoing," he said.

Almost a year ago, more than 27‚500 people were duped by BTC Global‚ a company in which thousands invested cryptocurrency valued at more than $50m.

At the time, numerous victims from across the country told TimesLIVE that they had invested between R16‚000 and R1.4m with BTC Global, as forex and commodities trader "Steve Twain" was a "master trader". The investors received inconsistent weekly payouts until "Twain" disappeared.

IRS Forensic Investigations, which specialises in financial crime investigations, on Thursday warned victims of Ponzi schemes and other related crimes to be wary of falling victim to such scams. 

"We have seen a marked increase in incidents where victims of syndicates are contacted by people claiming to be involved in the investigation of the crime, advising victims that misappropriated funds have been recovered and can be released for a fee," IRS investigator Chad Thomas told TimesLIVE.

He said victims needed to be extremely cautious when engaging with these "investigators".

"If these individuals claim to be investigators, the victims need to verify with the Private Security Industry Regulatory Authority (PSIRA) whether they are registered investigators. It is a criminal offence to purport to be a private investigator if you are not registered with PSIRA," he said.