South Africa has seen the largest Bitcoin fraud case to date: 27,500 victims and more than $50 million in fraud

Phoenix.com WEMONEY News: Recently, the "currency circle" is lively and the blockchain is hot, and many criminals have taken the opportunity to make money. On March 1, according to foreign media Timeslive, one of the largest Bitcoin scams to date has recently occurred in South Africa, with more than 27,500 victims deceived, including South Africans, Americans, Australians, etc.

South African Police Service spokesman Lloyd Ramovha confirmed that the Commercial Crime Unit is investigating a complaint against a company called BTC Global, which provides a service for converting bitcoins into online wallets and has seen thousands of people invest more than $500,000 worth of cryptocurrency in the company.

Lloyd Ramovha said that the scam happened two weeks ago and more than 25,700 people outside South Africa have been deceived. The total amount of fraud has exceeded 50 million US dollars, but as more victims report the case, this number may continue to rise in the future.

At present, the police cannot confirm whether the main participants of the scam are from South Africa. "The investigation is still in its early stages and it is not yet clear whether it is a Ponzi scheme. BTC Global is currently under investigation for violating the Financial Advisory and Intermediary Services Act," said Lloyd Ramovha.

Some industry insiders believe that financial assets on the blockchain have just entered a stage of explosive growth, and market supervision is in its infancy and lacks effective supervision, so it is the most likely place for Ponzi schemes to occur. There are many Ponzi schemes on the blockchain, perhaps more than 90% of them. Therefore, non-professionals with low risk tolerance must invest with caution. (Edited by An Jiu, Phoenix Network)