Unsuspecting investors are increasingly at risk, especially now that the financial market has become overly saturated.
This exponential growth makes noise, preventing unsuspecting investors from discerning reliable investment platforms from fraud.
CBI Global is a cryptocurrency investment platform allowing investors to buy CBI Cash for a guaranteed 1% to 4% return on investments. However, its Ponzi scheme-like operation was flagged by the FSCA in 2022, which entails various regulatory hurdles that push the platform to collapse.
In this TRU Insight, you’ll walk through everything you need to know about CBI Global – including its association with the busted Uhuru Tribe, its Ponzi scheme-like model, and the development of its inevitable collapse.
CBI Global Ponzi Scheme at a Glance
What Happened?
Two years after the initial FSCA investigation, the cryptocurrency platform CBI Global was revealed to be a Ponzi scheme in March 2024.
This ruling resulted in Botha – CBI Global’s operator’s arrest and an administrative penalty of ZAR 216 million. However, the FSCA silently dropped the CBI’s fraud case against the Ponzi company and its operator.
What Do We Know?
In 2022, the FSCA released a fraud warning against CBI Global as it renders authorized financial services to the South African public. This led to several regulatory hurdles, including the Bank of Namibia’s action to freeze all CBI Global and Botha’s bank accounts.
Botha was arrested in March 2024 and has been held for trial since then. However, the FSCA dropped the case, which led to Botha’s bail.
What Is CBI Global?
Founded in 2020, Coenie Botha’s CBI Global is a Namibia-based cryptocurrency investment company. An investor can trade or hold CBI Cash – the CBI-native cryptocurrency through its CBI Exchange platform.
But here’s the catch – CBI’s appeal to South African investors goes beyond the access to the cryptocurrency markets. Instead, it won the hearts of unsuspecting investors through the promised 1% to 4% weekly return.
As the cryptocurrency market was largely unregulated during the peak of CBI Global, South African investors believed in such a promise. Unknowingly, investing in the platform is a one-way street to financial losses.
CBI Global Association with Ponzi Fraud-Busted Uhuru Tribe
Uhuru Tribe was a Ponzi scheme disguised as a cryptocurrency company. Through the Uhuru-X platform, South African investors had access to Uhuru Cash – the company’s native cryptocurrency.
Its operation didn’t last a year, as it inevitably collapsed in late 2020.
However, the South African public remained at risk of the fraud activities of Uhuru Tribe even after its collapse. As revealed by the FSCA, Botha launched CBI Global to reboot and continue the busted operation of Uhuru Tribe.
The FSCA reasonably suspects that CBI Global, operated by Mr. Coenraad Barend Nolte Botha, is an investment platform-disguised Ponzi scheme.
Additionally, the regulator confirmed that the company is providing unauthorized financial services to the South African public, which harms the investors as the provision of service violates the Financial Advisory and Intermediary Services Act No. 37 of 2002.
FIAS Act no. 37 of 2002 mandates all South African financial services providers to be registered, authorized, and licensed by the FSCA. This oversight provides a layer of protection in the country’s financial markets.
Other Brand Names of CBI Global
The common practice of Ponzi scheme operators is to use different names or launch a new brand whenever a collapse is imminent.
In the case of CBI Global, the company went by different brand names to continue defrauding investors. This includes the following:
- Uhuru Tribe
- Uhuru-X
- Uhuru Cash
- CBI X SA
Who Is Mr. Coenraad Barend Nolte Botha
Coenraad Barend Nolte Botha, also known as Coenie Botha, is the person-of-interest on the controversy of CBI Global.
He owns Uhuru Tribe and CBI Global, both Namibia-based cryptocurrency companies. However, despite being Namibia-based, the companies’ primary market was the South African public.
Botha started making noise in the South African market in 2020 and run wild since then. However, his influence was halted when the FSCA flagged him and his companies for providing unauthorized financial services and soliciting investments from the South African public.
He was ultimately debarred for 10 years and fined ZAR 216 million by the FSCA in 2024.
The Development of the CBI Global-Ponzi Fraud Controversy
The CBI Global controversy highlights the layered nature of the Ponzi scheme investigation and how such cases in South Africa are often left unresolved.
CBI Global to Reboot Uhuru Tribe’s Operation
Right after the collapse of Uhuru Tribe, Botha launched CBI Global in late 2020 to reboot its halted operation.
Through CBI Global, Botha allows access to CBI Cash on CBI Exchange. Doing so is said to provide a guaranteed 1% to 4% return on investment – which won the hearts of unsuspecting investors.
FSCA Released Fraud Warning Against Botha and CBI Global
Two years after its launch, CBI Global was flagged by the Financial Sector Conduct Authority.
According to the FSCA, the crypto company solicited investment within the South African financial markets without the regulator’s authorization. This contravened the FIAS Act Section 37 of 2002, a financial law that protects the public from unethical practices of service providers.
Bank of Namibia (BoN) Held Freeze CBI Exchange and Botha’s Assets
Following the fraud warning from the FSCA, the Bank of Namibia froze all the assets of Botha, including those of CBI.
This means the investors wouldn’t be able to get ahold of their investments – causing havoc within the platform.
Interestingly, Botha offered a solution for investors to withdraw their funds. That is by opening a DafriBank account and depositing a minimum of ZAR 200.
But upon taking a closer look, this was Botha’s way to launder more money from the investors. Additionally, the link provided is a referral link provided by the payment processor. This means that Botha will receive a commission on every account created through the link.
Botha Blamed the FSCA and Filed a Lawsuit Against BoN
Botha released a cover-up statement to address the controversies surrounding the company. Ultimately, it aimed to put the blame on the FSCA and other South African authorities.
Botha said the FSCA intervention was unnecessary as the cryptocurrency market was largely unregulated. This means that such investigations shouldn’t take place.
CBI filed a lawsuit against the BoN as it halted the operation, which resulted in the loss of multi-million income.
CBI Legal Representative Advise Shut Down
Like any company, CBI has a legal representative in South Africa. This ensures that all the company’s processes and operations remain lawful and in line with the law.
Afrika Jantjies is CBI Global’s South African representative, and according to him, he advised Botha to shut down the business operation.
The attorneys of CBI Global promised to keep the company law-abiding. As per them, if CBI did anything unlawful or is not in line with the law, they must advise the company to desist and stop and comply.
The FSCA Revealed CBI Global’s Ponzi Scheme Operation
Two years after the initial investigation, the FSCA revealed that the operation of CBI Global mirrors a usual Ponzi scheme.
As Botha and CBI Global contravened the FIAS Act Section 37 of 2002 and the Banks Act No. 94 of 1990, he received a regulatory sanction from the regulator, specifically:
- An administrative penalty of ZAR 216 million
- Debarment for 10 years
According to the FSCA, the decision substantiates the findings that CBI Global is a Ponzi scheme disguised as a cryptocurrency company. It’s found by the regulator that there’s no legitimate, even existing, financial product to increase the investments of the members.
Additionally, the company’s aggressive sales tactics and the urgency created to deposit money to enable withdrawal raised the Ponzi scheme flag on the company’s operation.
Read the full statement of the FSCA regarding the matter:
The FSCA Dropped the Ponzi Fraud Case
Despite the confirmation that CBI Global was a Ponzi scheme operated by Botha, the case was dropped by the FSCA several months after the imposition of administrative penalties.
According to the consent order published by the regulator, the regulator’s decision was set aside.
This means that, unfortunately, the South African investors remained at risk of Botha’s fraudulent activities.
What should you do to ensure your safety in the financial markets despite the increasing cases of Ponzi schemes? You must stay informed to stay ahead!
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