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Bitcoin wallet, the South African cryptocurrency Ponzi scheme is slowly collapsing after they have run out of money to pay out the investors. In the latest cryptocurrency news below, we find out more of what happened.

The bitcoin scam that was based in Kwa-Zulu has officially run out of money to pay the investors since it was raking in more than $130,000 per day. According to the Ladysmith Gazette, the public face of the Ponzi scheme Sphelele Sgumza Mbatha revealed that he has exhausted funds to pay out the investors. Sgumza started the crypto investment scheme Bitcoin wallet but he later claimed that he is not the founder, only an employee:

‘’I was only the manager of the Ladysmith branch. I won’t continue working. I don’t have cash anymore.’’

Sgumza also noted that he had no knowledge of how the investment scheme worked. This spurs the question of why he was even employed in the first place without knowing about his job. Of course, no one believed that he was only an employee. However, he continued:

‘’I don’t know what’s going on. I don’t know online or how this system works. I have to be workshopped.’’

Sgumza did not explain that the only way investors will get their money back is through the Bitcoin Wallet website:

‘’The owner says people must go online and collect their money online. I, myself, have invested my money in there. I submitted my banking details online and now I am also waiting.’’

On the Bitcoin Wallet website, you can read repetitive claims that it had been making offline investor returns. This includes the promise to double the investors’ money in less than 15 working days. Also on the website, you can read that the profits are generated from trading which was allegedly done by dozens of professional traders in five different countries:

‘’We have over 150+ professional traders across 5 countries, these traders buy and sell crypto currencies daily and trade. The profits margins are then paid back to our investors…’’

Bitcoin wallet also claimed that since the beginning of operations, it had made more than 600 million but it was not specified whether that is dollars or the rand. On a daily basis, Bitcoin Wallet claims to pay up to 5 million and that it has more than 35,000 active investors, as explained in some of the best cryptocurrency news sites.