Spagni has not been convicted of anything yet, but he stands accused of defrauding his former employer, Cape Cookies, out of R1.4 million, or just shy of US$100,000, over the course of two years.
The FBI is reported to be teaming up with liquidators managing the assets of Mirror Trading International, acting on behalf of U.S.-based investors who have been left short in the collapse of the exchange.
Riccardo Paolo Spagni, better known as Fluffypony, is alleged to have committed corporate fraud while working for a South African tech company back in 2009.
Africrypt was a digital currency investment company targeting the rich and celebrities, until founders Raees and Ameer Cajee claimed earlier this year to be hacked and lost all the investors’ money.
Mirror Trading International grabbed headlines after it allegedly scammed 280,000 investors by posing as a multi-level marketing scheme, promising get-rich-quick returns for the investors.
The Financial Services Conduct Authority is seeking to categorize digital currencies as a financial product, giving it jurisdiction over the industry and allow it to protect investors.
Africrypt targeted high-net worth individuals and celebrities, promising them ludicrous returns, according to reports in South Africa.
In the wake of testing its central bank backed digital currency in different cities, China intensifies crackdown on block reward mining operations and digital currency transactions.
Absa Bank has reportedly barred its clients from purchasing digital currencies on Binance, telling its clients that the exchange was non-compliant.
South African investors are still in shock after a digital currency scam reportedly made off with R54 billion ($3.8 billion) and blamed it on a hack.
The project was announced for inclusion in the Intergovernmental Fintech Working Group regulatory sandbox earlier this week, enabling easier testing against existing and new regulatory frameworks.