While there are some scams out there that aren’t convincing enough to part you from your money, a recent Bitcoin scam has reportedly caused more than 28 000 South African investors to suffer losses exceeding R1 billion and counting, according to a business report by BusinessTech.

The scam goes a little something like this: an entity, known as BTC Global, tells clients they would earn 2% returns per day on their initial investment, 14% a week, and 50% in a month.

As part of the arrangement, payments were said to be made every Monday. Apparently, some of these investors were paid in terms of this agreement.

Sounds like the real deal at first.

But then the payments suddenly stopped, and that’s when the alarm bells started going off.

The Hawks released a statement on Friday, May 25, saying that the investigation involves a company identified as “BitCaw Trading Company, commonly known as BTC Global”.

Thing is, though, BitCaw Trading denies being involved. They’ve refuted all links to this scam and BTC, and that it wants the Hawks’ statement to be retracted or they will take the matter to court, according to another report by BusinessTech.

BitCaw MD, Andrew Caw, said:

While we appreciate that the Hawks are investigating BTC Global and the circumstances around the ‘investment opportunity”’ which folded earlier this year, we must clarify that BitCaw Trading is in no way related to BTC Global. Naming them as the same company has already had significant implications for the trustworthy and respected BitCaw Trading.

BitCaw Trading does not manage or trade with third party money or offer any kind of investment returns. BitCaw has publicly taught clients how to avoid online scams.

So have the Hawks been in contact with his company to sort the matter out or at least talk about the investigation?

That’s a big fat no.

Caw stated that neither the Hawks nor any of the investigators involved had ever made contact with his company. To date, they’ve yet to contact him.

Awkward.

And it’s not doing BitCaw any favours, says their founder:

For a small business built on trust and reputation this has caused significant damage to us. In addition, this action has effectively shut down our new product launch which we have had to shelve after our financial services provider (FSP) partner has been forced by their internal policies to withdraw their support.

Oh dear.

BitCaw has sent a letter of demand to retract the statement, but Hawks spokesperson Brigadier Hangwani Malaudzi said they’re not going to budge and would wait for the courts to make a ruling on the matter.

As far as we are concerned, our statements on the matter still stand unless we are convinced otherwise.

Hoo boy, friends. I guess this situation is going to drag out for some time.

[sources:businesstech&businesstech]