A 33-year-old cryptocurrency scammer, Mfundo Manci, has been sentenced to ten years in prison for defrauding investors through a fraudulent investment scheme. Appearing before the Durban Specialised Commercial Crimes Court, Manci pleaded guilty under section 105 of the Criminal Procedure Act as part of a plea and sentencing agreement. His charges included fraud, violations of the Banks Act, the Financial Advisory and Intermediary Services Act, and the Prevention of Organised Crime Act.
Between June 2020 and April 2021, Manci operated an investment scheme that promised high returns on cryptocurrency trading. He recruited two women, who were unaware of the fraudulent nature of the operation, to promote the scheme and bring in investors. While some investors received profits, these payouts were made using money from newer investors rather than legitimate trading returns. Instead of investing the funds, Manci used them for personal trading and expenses.
As pressure mounted from investors demanding their money, Manci vanished on a supposed business trip to Cape Town, prompting his family to report him missing. In reality, he was spending investors’ funds. His disappearance led to multiple criminal complaints, prompting the Asset Forfeiture Unit (AFU) to obtain a preservation order freezing his bank accounts. With his funds depleted and his accounts locked, Manci eventually turned himself in to authorities in Cape Town.
The AFU recovered over R4.5 million from his frozen accounts, and the court sentenced him to ten years in prison, with all fraud counts consolidated and running concurrently. His conviction serves as a stark warning about the risks of unregulated cryptocurrency schemes and the importance of thorough due diligence before investing in such ventures.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
