A 33-year-old cryptocurrency fraudster has been sentenced to ten years for defrauding and misleading clients by promising high returns.
Mfundo Manci appeared in the Durban Specialised Commercial Crimes Court on Tuesday, where the sentence was handed down.
Crypto fraudster plea
He pleaded guilty under section 105 of the Criminal Procedure Act, as part of a plea and sentence agreement for himself and his company, Crypto Mzansi Group (PTY) LTD. He admitted to several charges, including fraud, violations of the Banks Act, the Financial Advisory and Intermediary Services Act, and the Prevention of Organised Crime Act.
Manci committed the Cryptocurrency crimes between June 2020 and April 2021.
Natasha Ramkisson-Kara, spokesperson for the National Prosecution Authority (NPA), stated that as part of Manci’s plea and sentencing agreement, all fraud counts against him were consolidated for sentencing and will run concurrently.
Online trader
According to the NPA, Manci was an online trader who bought cryptocurrency and, at some point, started an investment scheme with short-term and long-term promotions promising high returns.
He managed to enlist the assistance of two women he knew and introduced them to the online trading business.
Manci told them that he wanted them to promote his investment business and informed them that if they referred a client for investment, they would receive a commission. Manci then registered Crypto Mzansi Group (PTY) LTD and opened accounts with various banks.
The two women who were unaware of the scheme recruited investors. Manci also recruited some investors who communicated with him directly.
While some investors did receive profits from their investments, they were paid with other investors’ money. Manci did not invest the monies received and only traded for himself.
Assets forfeited
Ramkisson-Kara said Manci then flew to Cape Town on a business trip and was unreachable to his family and the investors. This caused his family to report him missing. During this time, Manci was spending the investors’ monies, and the investors opened criminal cases against him.
“On 22 August 2022, the Asset Forfeiture Unit (AFU) of the NPA obtained a preservation order, freezing all Manci’s bank accounts.
“Realising that his funds were dried up and that his accounts were frozen, Manci handed himself over to the authorities in Cape Town, and the case was then transferred to Durban. The AFU order was subsequently finalised, recovering over R4.5 million from Manci,” Ramkisson-Kara said.
Advocate Nhlakanipho Selwyn Mzulwini, representing the state, finalised the criminal matter, and Advocate Sipho Nkosi dealt with the AFU applications.
Ramkisson-Kara said they welcome the successful finalisation of the matter.
Source: bbc.com
