Pyramid Schemes Continue to Thrive in Swaziland: BTC Global’s Collapse Doesn’t Deter New Recruits

By Thembeka Dlamini | 2018-03-11

New Pyramid Schemes Emerge After BTC Global’s Collapse

Despite the collapse of BTC Global, which reportedly saw over E200million lost, new pyramid schemes have emerged in Swaziland, attracting eager participants. [Note: BTC Global was a pyramid scheme that claimed to be a bitcoin mining operation.]

Immediately after BTC Global’s demise, some followers jumped ship to other schemes, such as Esco Options, which also folded a week later.

Warning Signs: Schemes with Stopped Pay-outs

A dedicated broker, who requested anonymity and has made significant profits from pyramid schemes, warns potential investors about schemes that have recently stopped pay-outs, such as:

• Earn Bitcoin Forever: promised returns of 12 to 24 percent daily
• Extract Mining: once paid 14 percent, now returns only seven percent

Swaziland’s History with Pyramid Schemes

Swaziland has a history of being rocked by such schemes. In the past, some notable failures include:

• Sharemax: attracted thousands of investors, including pensions and retrenchment funds, before collapsing, costing them an estimated E24million
• Channel S Club: cost thousands E17million, and its boss, Qhawe Mamba, was later imprisoned

Despite regulatory interventions, some investors still cling to hope. For instance, Benjamine Nsibandze, Chairman of Swaziland Investors, met with Nova Group in November 2017 to discuss having their debentures transformed into shares but investors expressed their desire to withdraw their funds altogether.

Investor Protection and Caution

The allure of passive wealth still holds sway over potential investors, and the collapse of MMM, which cost an undisclosed amount of money to citizens, doesn’t deter some from participating once again. New schemes, like Big Buxx Swaziland and Empowerment Gener, have emerged, with estimated investments of E500 000 each.

In light of these continuous schemes, potential investors should proceed with caution and be aware of the possible risks involved. Investing always comes with a degree of risk, and it is essential to ensure that investments are transparent and registered with the appropriate regulatory authorities.

Red Flags

1. Unrealistic returns or guarantees
2. Lack of transparency in operations
3. No licensed or registered with regulatory authorities
4. No product or service being sold, only recruitment of new members
5. Pressure to recruit new members or invest large sums quickly.