More Africans are succumbing to the false promises of incredibly high quick returns on their investments from these cryptocurrency investment firms. The most notable assault on investor funds happened in South Africa around March this year, where a crypto investment firm BTC Global disappeared with over $80 million of investor funds. This firm scammed nearly 28,000 people out of ignorance.
BTC Global had promised investors a ridiculously high investment returns with promises of 2% interest per day, 14% per week and ultimately 50% per month. It is also reported that the alleged mastermind of the scam known as Steven Twain doesn't exist, the names he used as the Director of the firm were fake. This was an organized crime that was beyond the minds of investors.
Why Crypto Scams Are Trending In Africa?
Cryptocurrency scams and ponzi schemes have found fertile ground in Africa ever since crypto and blockchain become more popular in the continent. These scam firms are taking advantage of uninformed Africans to fraud their hard earned money.
In Africa, most people especially the youth prefer the so-called get rich-quick-schemes where most of them are scams or ponzi schemes. They are promised quick and high returns on investments. These kind of firms are at a rapid rise and our governments have failed to do away with them.
Fraudsters are penetrating the continent to take advantage of the uninformed groups of people. Most people in Africa are too desperate for riches, so any firm that comes up with promises of high returns in a short period, automatically people will rush in to make investments thinking that they will soon escape poverty.
Ponzi schemes are taking this advantage to scam people.
This is my polite advice to fellow Africans, No one will make you rich.
Till then,
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