The issue with ignoring Ponzi schemes, aside from inevitable widespread losses, is individuals operating them begin to imagine they’re above the legislation.
“Scamming is an inalienable proper, how dare you cease me!” That kind of factor.
We’ve seen it in South Africa with Cherie Marks and Mirror Buying and selling Worldwide. Charles Scoville within the US took his combat for the appropriate to Ponzi rip-off to the Supreme Courtroom.
Or tried to. The Supreme Courtroom wasn’t .
The most recent instance of Ponzi scammer outrage over regulation is Coenie Botha in Namibia.
Botha is founder and operator of the CBI World Ponzi scheme. CBI World has its roots in Uhuru Tribe.
Previous to operating Ponzi schemes, Botha left company Namibia underneath the cloud of a corruption investigation by the Anti-Corruption Fee.
Uhuru Tribe, launched in late 2018, noticed Botha goal South Africans with UHC Ponzi factors.
Uhuru Tribe associates invested in UHC Ponzi factors, obtained a ROI and cashed out different individuals’s cash.
Uhuru Tribe collapsed in November 2020, prompting Botha to launch CBI World.
CBI World was Uhuru Tribe rebooted, this time with CBI-X Ponzi factors.
In mid 2021 CBI World collapsed. Botha has since rebooted it twice.
For probably the most half, Botha and his Ponzi schemes have been ignored by regulators in South Africa and Namibia. That modified final month.
The Financial institution of Namibia froze CBI World’s and Botha’s identified financial institution accounts within the first week of March.
Testomony to Namibia’s failure to control MLM securities fraud, Botha continues to be free to run his Ponzi scheme. He simply can’t use Namibian banking channels. No less than not formally.
Whereas CBI World nonetheless solicits funding in cryptocurrency, the issue for Botha is he’s focused a bunch of largely crypto illiterate traders.
CBI World traders wish to dump South African rand into CBI World, watch their CBI-X token balances passively improve, after which money out different individuals’s cash.
Because of shedding conventional banking channels, funding into CBI World has collapsed.
Left within the precarious place of heading a Ponzi scheme that has been monetary severed by Namibian authorities, however continues to be free to function, Botha is now suing the Financial institution of Namibia.
Confidente experiences Botha is
suing the Financial institution of Namibia (BoN) for N$500 000 per day ranging from March 4 for lack of revenue in addition to N$5 million for Botha in his private capability.
Backdated at time of publication, Botha is in search of round $1.8 million USD in damages
A mid March courtroom order noticed the Namibian Excessive Courtroom verify CBI World funds would stay frozen pending the result of the BoN’s investigation. Botha did win an “operational bills” carveout, however that doesn’t seem to have been a lot.
Suing the BoN seems to be an try to point out CBI World traders that he’s doing one thing. Normal regulatory observe nevertheless is, as soon as caught, you sit tight until authorities make their findings public.
All Botha is doing is operating up authorized charges, paid for by CBI World traders.
On the flipside Namibia has been turning a blind-eye to Botha’s Ponzi scamming for thus lengthy, that it’s unsure whether or not he’ll get his manner.
Actually a Ponzi scammer suing Namibia’s high monetary regulator for damages isn’t look. A choice in favor of Botha would successfully restrict BoN’s skill to control Ponzi schemes.
In the meantime one thing else of concern is Confidente reporting funds frozen by the BoN have affected “at the very least 4000 Namibians”.
Alexa presently ranks South Africa as the highest supply of site visitors to CBI World’s web site, coming in at 87%. If 4000 Namibian traders are affected by the freeze, tens of 1000’s extra South Africans are in for a lesson on Ponzi math.
Whether or not South African authorities are working with the Financial institution of Namibia is unclear. To this point South African authorities haven’t taken any public motion in opposition to Botha, CBI World or native South African promoters.