According to the commission, victims of the pyramid scam may have lost as much as $6 million.
The National Consumer Commission (NCC), a consumer protection agency in South Africa, recently declared that Obelisk, a putative supplier of bitcoin mining equipment, is actually a pyramid scheme that has defrauded naive investors of millions of dollars. According to reports, the watchdog made the statement in response to complaints from investors who claim Obelisk defrauded them.
The 4,000 people who took part in the investment plan believed they were buying bitcoin mining equipment that would provide them with ongoing income, according to a Businesstech report. According to the study, the machines are priced between $18.75 and $24,850.
The watchdog stated that some investors had received low returns in an effort to induce them to make larger investments.
But as soon as investors couldn't withdraw money, issues arose. According to the study, anybody who confronted the scheme's operators were first blocked and then kicked off of the Whatsapp groups.
According to reports, the NCC has acknowledged receiving 25 complaints from investors who say they lost $41,400. However, according to the watchdog, up to "4,000 individuals from eight WhatsApp groups" may have lost an amount equal to $6.18 million.
Thezi Mabuza, the acting commissioner of the NCC, warns South African citizens to be wary of investment programmes that promise high returns in a short period of time.
We kindly ask the general public to refrain from participating in these duplicitous scams in order to spare themselves pain and misery. According to Mabuza, history is rife with instances of these schemes that unavoidably failed and frequently left behind a trail of financial hardship, broken friendships, and even disintegrated families.
