Bit of a Scam Club?

In March last year, a branch of Global Bitcoin Investment was launched in Thohoyandou and was hailed as an initiative through which “we will win the war against poverty”. The investment initiative now seems to have been nothing more than an elaborate scam and many investors stand to lose all their money.

Global Bitcoin Investments occupied office space in the Choppies Mall, opposite Phalaphala FM. It formed part of the global BitClub Network (BCN), which was stated to have a membership of more than 100 000, with branches in countries such as Malaysia, South Korea, Japan and the UAE. BCN is involved in Bitcoin mining, the process whereby the cryptocurrency, Bitcoin, is created.

Bitcoin mining was punted as a lucrative investment option, with earnings well beyond what established financial institutions can offer. Many investors seem to believe that it provides a way in which they can double their money in less than a year.

In June last year, Global Bitcoin Investments held a special function during which donations were made to several local charitable organisations. The event was attended by dignitaries, which included councillors from the Thulamela Municipality and even a representative of the National Youth Development Agency. The company was praised for its entrepreneurial vision and its philanthropy.

Investment experts had their doubts about the achievability of some of the promises made by the BitClub marketers, but for more than a year the Thohoyandou-based company proceeded with their business and collected investment money. Slowly, however, cracks started appearing.

About two weeks ago, Limpopo Mirror made contact with a disgruntled investor, who told us that he had invested just over R70 000 in the scheme in October 2018. Among other things, he was promised that he would earn one Bitcoin seven months after investing. In May 2018, when “interest” on his investment was due to be paid out, this would have been worth about R121 500. The payment, however, did not happen and he also realised that his investment had been made into an incorrect “pool”. His efforts to try and recover his money amounted to nothing, with phone calls being ignored.

When being questioned as to what documentation had been signed and what the agreements entailed, he answered that no paperwork was involved. The only documents forwarded to him were two marketing pamphlets, giving a brief outline of how the BitClub scheme works, but these pamphlets were very vague.

We sent a reporter to the office in Thohoyandou last week to try and find out if it was still open for business. At “Office no: 8, 9 & 12, Silver Square Mall” no-one was to be found, with chains and locks on the doors. Hawkers operating across from the premises said that some staff members did open up now and then, but for most of the time the offices remained locked.

Who are Global Bitcoin Investments?

The company was registered in December 2017 and has only one director, the 38-year-old Enock Phathutshedzo Nembilwi. During the 2016 local elections, he stood as a candidate for COPE in a ward in the Thulamela Municipality.

The registered address for Global Bitcoin Investments is a house in an upmarket residential area in Louis Trichardt. Last Friday, a removal truck was parked in front of the house, with workers busy loading expensive furniture.

When the owner of the house was contacted, he said that Nembilwi used to be his tenant. He was not aware of the fact that Nembilwi had registered the house as a business premises. He said that he had recently sold the house and the new owner would be moving in soon. Nembilwi was given notice and moved out. On a question of whether Nembilwi was behind on his rent, he merely answered that “he owes me a lot of money”.

The cellphone numbers supplied for Nembilwi did not work. One of the numbers did not ring and the other was answered by a woman, who denied any knowledge of a Mr Nembilwi.

We tried another contact number, which was for Mr Marshil Makananisa, who worked for the company. When he was asked about Global Bitcoin Investment, he said that he was no longer involved with this company. “I quit,” he said. When prompted to elaborate, he said that the staff were no longer being paid. He said that five more people working for the company had all left.

“What I know is that a lot of people are complaining about Mr Nembilwi,” he said. He could not assist with additional phone numbers where Nembilwi could be contacted.

A series of questions were emailed to Nembilwi at the official address provided, but he did not respond.

Last week, questions about Global Bitcoin Investments were sent to the liaison department of the Financial Sector Conduct Authority (FSCA). The FSCA was asked whether the regulating and monitoring authority was aware of the BitClub scheme and whether an investigation was being conducted. In spite of sending the email to more officials at the FSCA (after receiving no replies), we had received no responses at the time of our going to press.

News - Date: 24 November 2019

Anton van Zyl

Anton van Zyl has been with the Zoutpansberger and Limpopo Mirror since 1990. He graduated from the Rand Afrikaans University (now University of Johannesburg) and obtained a BA Communications degree. He is a founder member of the Association of Independent Publishers.

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