BTC Mining Investment Platform Declared Pyramid Scheme By South African Consumer Watchdog – Regulation Bitcoin News

About 4,000 South Africans who have invested in Bitcoin mining equipment supplier Obelisk may have taken part in the pyramid scheme, according to the National Consumer Commission. The commission said the participant in the pyramid scheme may have lost more than $6 million of his.

Obelisk used social media platforms to lure victims

South Africa’s consumer watchdog, the National Consumer Commission (NCC), recently announced that Obelisk (a purported supplier of bitcoin mining equipment) defrauded unsuspecting investors out of millions of dollars. Recently announced that it is a pyramid scheme. Watchdog reportedly made the announcement after receiving complaints from investors accusing Obelisk of cheating them.

According to a Business Tech report, 4,000 individuals who participated in the investment scheme were convinced they were buying bitcoin mining equipment that could generate a certain amount of income. The machine costs him between $18.75 and $24,850, the report added.

In a statement, the commission revealed that Obelisk lured victims through social media platforms like Facebook.

Participants were recruited on social media platforms such as Facebook and were required to make a minimal investment. After joining and making the initial investment, they were added to various Obelisk Whatsapp groups.

Watchdog added that some investors were given small returns to persuade them to invest more.

Residents were warned not to fall for scammers’ tricks

However, the problems soon began when investors were unable to make withdrawals. The report claims that individuals who confronted the operators of the scheme were blocked and subsequently removed from the Whatsapp group.

NCC reportedly confirmed it received 25 complaints from investors claiming they lost $41,400. However, Watchdog believes “4,000 participants from eight Whatsapp groups” may have lost $6.18 million worth.

According to Thezi Mabuza, deputy commissioner of the NCC, South Africans must avoid being fooled by investment plans that promise big returns in a very short period of time.

“We plead with the public to save themselves from heartache and suffering by not participating in these deceptive schemes. , financial difficulties, broken trust relationships, broken friendships, and even broken families.

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