Fake Cryptocurrency Exchanges Blocking Withdrawals

How This Scam Works

You're introduced to a crypto trading or arbitrage platform through a WhatsApp group, Telegram channel, a romance scammer, a social media ad, or a friend who is already 'earning'. The platform looks professional — it has a website, a dashboard showing your growing balance, and sometimes a mobile app. You deposit Bitcoin, USDT, or ZAR via EFT. Your balance grows quickly, often showing 3–8% returns daily. When you try to withdraw, you hit a wall: you're told you need to pay 'withdrawal tax', 'account verification fees', 'compliance fees', or your account is 'frozen' pending a deposit. Each time you pay, a new reason to block the withdrawal appears. Some platforms impersonate real exchanges (Binance, Luno) using near-identical domain names. The FSCA has confirmed that Arbitrawallet and NTC Global Trade Fund — which collected R492 million from nearly 2,000 South Africans — had no authorisation to provide financial services, with investigations suggesting investor funds never reached any legitimate trading platform. The FSCA has also warned about Afriinvest and MutualWealth, which promised daily returns of up to R10,000.

Red Flags to Watch For

• ⚠ The platform is not registered with the FSCA as a Crypto Asset Service Provider (CASP) — you can verify at fsca.co.za
• ⚠ You are shown impressive daily or weekly returns (3–8%) that are not achievable on any regulated exchange
• ⚠ Withdrawals are blocked pending 'tax payments', 'compliance fees', or 'account upgrade fees'
• ⚠ The platform's domain name is a slight misspelling of a real exchange (e.g. 'lunoo.co.za', 'binnance.com')
• ⚠ Customer support is only available via WhatsApp or Telegram — no phone number, no registered address, no company registration number
• ⚠ You were introduced to the platform by a romance interest or a 'friend' who claims to have made large returns
• ⚠ The platform uses deepfake videos of Cyril Ramaphosa, Patrice Motsepe, or Elon Musk to promote 'exclusive investment opportunities'

Evidence

• FSCA issued a formal Warning Wednesday notice in May 2024 warning the public against Arbitrawallet, NTC Global Trade Fund, and directors Edwin Thabo Letopa, Marius Venter, and Sakhile Matsimela — confirming they had no authorisation to provide financial services (x.com/fscasouthafrica/status/1788219034783105175)
• BitcoinKE reported in September 2025 that NTC Global Trade was placed in provisional liquidation after investigations linked the firm to approximately R492 million (~$27 million) in investor losses from nearly 2,000 South Africans (bitcoinke.io/2025/09/ntc-global-trade-faces-liquidation)
• Moneyweb reported the NTC case took a violent turn when attorney Bouwer van Niekerk, who was investigating the scheme, was assassinated in his Johannesburg law firm in September 2025 (moneyweb.co.za/moneyweb-crypto/crypto-firm-investigated-by-slain-attorney-bouwer-van-niekerk-liquidated)
• FSCA warned in June 2025 that scammers were using deepfake videos of President Ramaphosa and billionaire Patrice Motsepe to promote fake crypto investment platforms on social media (timeslive.co.za/news/sci-tech/2025-06-13-beware-of-fake-videos-of-ramaphosa)
• FSCA warned against Afriinvest and MutualWealth, which promised users daily returns of up to R10,000 — the regulator confirmed neither was authorised to solicit investment funds (mariblock.com/stories/fsca-warns-against-unlicensed-crypto-investment-companies)
• FSCA investigated 30 crypto entities in 2024 and as of December 2024 had approved 248 CASP licences while declining 9 and continuing investigations into unlicensed operators (techpoint.africa/2024/07/10/fsca-investigates-crypto-entities)

What to Do If You've Been Targeted

1. 1 Before depositing anything, verify the platform is FSCA-licensed as a CASP at fsca.co.za — search their register of approved entities
2. 2 Report unregistered crypto platforms to the FSCA by calling 0800 20 37 22 or emailing info@fsca.co.za
3. 3 If you've already deposited funds, stop making further payments immediately — every 'fee to unlock withdrawal' is part of the scam
4. 4 Open a case with SAPS commercial crimes unit — call 10111 or visit your nearest station with all transaction records, screenshots, and wallet addresses
5. 5 Report to the Hawks (Directorate for Priority Crime Investigation) for large-scale fraud at dpci.gov.za or call 0800 205 205
6. 6 Contact your bank's fraud department immediately if you transferred ZAR via EFT — Capitec: 0860 10 20 43, FNB: 087 575 9444, ABSA: 0800 111 155, Nedbank: 0800 110 929
7. 7 Report to the NDPP (National Director of Public Prosecutions) Asset Forfeiture Unit if you believe you've identified an organised scheme — npa.gov.za