South African authorities confirm Crowd1 operating illegally
After doing nothing for almost a year while the Crowd1 Ponzi scheme spread like wildfire, South African authorities have clarified the company operates illegally.
Well, sort of.
Rather than take any initiative, the FSCA clarified Crowd1 was operating illegally in response to a public Twitter enquiry.
As above, it was only after being reached out to that the FSCA clarified Crowd1
is not an authorised FSP, nor a representative of an authorised FSP and there is no record of an application to become an authorised FSP with the FSCA.
They are not authorised to render any financial services as contemplated in the Financial Advisory and Intermediary Services (FAIS) Act.
This is the equivalent of a securities fraud warning, although I have no idea why the FSCA is providing it on Twitter instead of their own website.
In light of Crowd1 operating illegally in South Africa, the FSCA advises;
Members of the public are warned to not conduct any financial services business with any individual or entity associated with Crowd 1.
Whether they follow up with local enforcement authorities remains to be seen. Not holding my breath though.
In the early stages of Crowd1 recruitment was concentrated in South Africa. At the time of publication Alexa ranks Crowd1 as the seventeenth most visited website in the country.
South Africa still makes up a large percentage of Crowd1 investors, however recruitment has picked up elsewhere in the world.
Update June 24th 2020 – The FSCA has now published an official statement confirming Crowd1 is a fraudulent business opportunity.