25/08/2025
https://www.saflii.org/za/cases/ZAWCHC/2025/376.html
Wentzel v Banxso (Pty) Ltd and Ors (23249/2024) [2025] ZAWCHC 376 (22 August 2025)
HELD: That it would be just and equitable to wind-up Banxso as it is promoted for the purpose of perpetrating fraud or deception on investors as an online investment/trading platform. (Is this a pyramid scheme scam)
See paragraphs below:
[54] The FSCA has in detail set out the reasons why it decided to provisional withdrew Banxo’s FSP license. The allegations underpinning the complaints by Banxso’s clients were the following:
(a) The complainants saw various advertisements that were circulating on social media, including a news article which purported to be from the South African Broadcasting Corporation (SABC) relating to an investment platform known as Immediate Matrix. The news article stated that Tesla/Elon Musk launched a new platform, called Immediate Matrix, (IM) which was an automated trading platform aimed at helping families become wealthier;
(b) The news article and advertisements (videos) referred to a minimum investment deposit of R4 700, with a promised return of R34 300 within a week. This equated to a return of approximately 730% in one week:
(c) the IM webpage reflected that prospective investors would be contacted but it did not explain who would be contacting the prospective investors. However, after the prospective investors submitted their details, within minutes; they were contacted by one of Banxso’s agents through SMS, email or telephone call;
(d) in addition to the promotional videos and news articles with a link, Immediate Matrix also had a website. On IM’s website, prospective investors were requested to submit their personal details. However, the process differed slightly on the website compared to the advertisements, in that on the website, once the details were captured and the ’submit’ button clicked, the website redirected the prospective investors to a ‘thank you’ webpage. On the ‘thank you’ webpage, another button called ’continue to account’ popped up. After clicking the ‘continue to account’ button, it redirected the prospective investors to Banxso’s website, with another pop-up to make a deposit into the newly created account with Banxso;
(e) the Banxso agents assisted them with opening trading accounts and solicited the initial deposit from the prospective client as advertised by IM. After making the deposits, the agents directed the investors to enter specific trades derivatives, which ultimately led to massive trading losses;
(f) the consultants used aggressive and high-pressure sales techniques to convince investors to invest additional funds;
(g) the complainants were lured by the deepfake videos featuring celebrities / prominent persons and which promised high returns;
(h) they also alleged that once they invested with Banxso, Banxso failed to process their withdrawal requests timeously and did not disclose material information such as swap fees and the risks associated with trading.
[55] The FSCA, ultimately recorded that having regard to the complaints, and its own investigation, including an analyses of Banxso’s bank accounts, it established that: The deepfake advertisements appeared to have been created by IM, a fictitious entity with no real corporate persona; the identities of the celebrities and prominent persons featured in the deepfake videos were fraudulently used; The videos and news articles contained electronic links that led to an IM webpage, through which prospective investors could provide their personal details, as well as their contact details; when the prospective clients clicked on the link on the deepfake advertisements, they were redirected to Banxso’s website. The clients’ funds were then transferred into Banxso’s bank account. The products offered by Banxso were similar to the ones on the deepfake advertisement. The client deposits into the various Banxso bank accounts were consistent with the investment opportunities advertised through the deepfake advertisements; the IM webpage reflected that prospective investors who submitted their personal information would receive a call from a person who would assist the prospective investors in setting up their trading accounts in derivatives. The prospective investors were contacted by Banxso agents who fulfilled the commitments made by IM in the deepfake advertisements; Banxso agents contacted clients and confirmed that they were calling because the prospective clients showed interest in the IM product or in connection with the advertisements which featured the prominent persons; the deposits into Banxso’s bank accounts increased significantly when the deepfake advertisements gained prominence; and a high number of clients confirmed that they invested with Banxso because of the deepfake advertisements.
[56] Banxo denied any association with the IM scheme and disputes the FSCA’s findings. According to Banxso it did not act fraudulently or unlawfully and intends to traverse the FSCA’s findings in the appropriate forums. It admitted that its website called for an industry standard deposit of roughly 250 US dollars, translating to approximately R 4 700 (at the time) and is a figure which IM also used in their marketing material.