The Financial Sector Conduct Authority (FSCA) has issued a strong warning against AfriInvest and MutualWealth, two companies allegedly operating without financial licenses in South Africa. These firms claim to offer AI-driven cryptocurrency trading with highly unrealistic returns, raising red flags among financial experts.
Unauthorized Operations and Fraudulent Endorsements
On March 28, 2025, the FSCA confirmed that both firms are illegally soliciting investments while promising returns of up to R10,000 per day. Additionally, they have been accused of falsely associating with high-profile figures such as Maroela Media, Kallie Kriel, and Steve Hofmeyr, all of whom have denied any involvement.
Efforts to contact the companies have failed, reinforcing suspicions about their legitimacy. The FSCA warns investors that dealing with unlicensed firms exposes them to financial loss due to a lack of regulatory oversight and consumer protection mechanisms.
FSCA’s Crackdown on Fraudulent Schemes
This warning follows previous FSCA actions against Banxso and AfriMarket, both of which used misleading advertising and unauthorized endorsements to attract investors. Banxso’s license was revoked in October 2024 after it was found using deepfake ads to promote its services.
The FSCA urges investors to verify financial service providers via its official website or by calling 0800 110 443. Any financial offer promising excessive returns with minimal risk should be treated with extreme caution.
With an increasing number of scams in the crypto space, the FSCA continues its efforts to safeguard South African investors from fraudulent schemes.
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