LADYSMITH – Following reports that clients in KwaZulu-Natal were left stranded after Bitcoin Wallets offices reportedly closing down, Alfred Duma Municipality has shed the light on the saga.
According to the Ladysmith Gazette website, Sphelele Mbatha also known as Sgumza, was told by the municipality to look for an alternative office, not chasing him away.
Alfred Duma Municipality’s official, Siyabonga Maphalala, said the officials are just as baffled just like the public as to why Mbatha decided to close the doors of Bitcoin Wallets on Thursday.
“We invited him (Sgumza) to a meeting yesterday to discuss the complaints we were receiving from other businesses in the area. When we inspected his premises after receiving these complaints, we found that he was violating the by-laws in terms of crowd control and public disturbance,” stated Maphalala.
“We informed him that he needed to look for alternative premises, but we never asked him to close right away. We just wanted to ensure that he would put a plan in place to relocate his business soon.
“I do not know if Sgumza is operating a Ponzi Scheme or not. I have heard, however, that he will continue operating once he has found alternative premises,” he concluded.
Moreover, the municipality official explained that during the meeting, Sgumza had given municipal officials no indication that he intended to close up shop the very next day.
Meanwhile, Colonel Pillay of the KZN Hawks said that investigating officer, Trevor Harding, has since met all the relevant stakeholders and confirmed that an investigation is currently underway.
