South African Forex Scam: Durban Trader Defrauds Millions and Sentenced to 10 Years in Prison

Mfundo Manci, a forex trader from Durban, South Africa, has been sentenced to ten years in prison for running a fraudulent investment scheme that swindled millions.

Manci has pleaded guilty to several charges, including fraud, at the Durban Specialised Commercial Crimes Court.

It is reported that between June 2020 and April 2021, Manci committed these crimes through his company, Crypto Mzansi Group (PTY) LTD. He promised investors that cryptocurrency investments would bring in 1,000% returns but did not use his clients' funds for real investment transactions. About R4.5 million was spent on his personal expenses, such as buying luxuries.

Many investors' savings went into the Ponzi scheme, but Manci hid his tracks after the scam was exposed. He was eventually arrested in Cape Town.

Authorities seized his assets and recovered some of the funds. And Manci will spend his next decade in prison.

Manci's case is the most severely punished cryptocurrency fraud case in South Africa in recent years, which not only highlights the risks of unregulated cryptocurrency investments, but also demonstrates the increasingly severe crackdown on fraudulent activity there.

The Directorate for Priority Crime Investigation reminds the public to check the information of financial service providers at the Financial Sector Conduct Authority (FSCA).