The Financial Sector Conduct Authority (FSCA) of South Africa has set aside a fine of more than R216 million and a 10-year debarment of Namibian businessman Coenraad Botha.
Botha owns CBI X SA, a bitcoin investment entity, and is the founder of Coin-Based Innovation Global, also known as CBI Association.
He was investigated by the FSCA for soliciting funds from the public by promising unrealistic returns of 1% to 4% a week.
An online article reports that the FSCA said an investigation by the authority found no legitimate financial product or investment activity that generated the purported return paid to investors by Botha and the CBI entities.
They found that Botha, CBI X SA and CBI Association contravened Section 11(1) of the South African Banks Act from 19 March 2019 to 6 January 2022.
However, in terms of an agreement reached between them, the FSCA agreed to set aside its decision to fine Botha R216 051 141 and debar him for 10 years.
Moonstone Information Refinery said the agreement was published by the Financial Services Tribunal as a consent order on 7 October.
The order stipulates that the matter has been remitted to the FSCA for further consideration.
No further details of the agreement were disclosed.
Botha is also in hot water in Namibia after the Bank of Namibia (BoN) instituted an investigation into his business.
The central bank laid a charge with the Namibian Police against Botha and his wife, Zimbabwean national Charlotte Murove.
They were arrested at the Buitepos border post near the Botswana/Namibia border on 11 March after the police allegedly received intelligence that they were planning to flee the country.
They are facing 64 charges, including 31 counts of conducting banking business without authorisation, one charge of fraud, 31 counts of money laundering and one count of conducting a Ponzi scheme.
It is alleged that they misrepresented to investors during the period 2018 and 2022 that they were operating a legitimate business authorised to receive investments from the public, and that such investments would grow with interest, while knowing that they were not authorised to receive any payments from the public.
The State alleges that the couple defrauded investors with close to N$163 million.
Their companies, CBI Exchange and Papaya Investments, are under investigation by the police after the BoN instituted charges of conducting banking business without authorisation.
They are currently out on bail.