South African Police Arrest Two for Alleged $2 Million Crypto Fraud

The Hawks, a South African police unit, have arrested 57-year-old Zain Muhammed Valle and 25-year-old Michelle Bianca Bezuidenhout for an alleged R34 million (Approx. $2.1 million) cryptocurrency scam, local media reported Wednesday.

The case now involves two suspects and Bezuidenhout’s husband, Jarrod de Lange, 32, who was arrested in 2020 for his alleged involvement in the scam. A police investigation revealed that Valle introduced the victim to De Lange for a business partnership. 

Hawks spokesperson Captain Ndivhuwo Mulamu said the suspects lured the victim into committing funds to a fake cryptocurrency establishment called Siyakhula Logistics Pty (LTD) in February 2020. Mulamu further noted that the suspects promised the complainant lucrative returns on their investments. 

The spokesperson added that the victim agreed to invest, thereby transferring about R34 million ($2.1M) into the establishment as well as Bezuidenhout’s bank accounts through separate transactions.

Furthermore, he explained that, instead of the suspects investing the money in the crypto establishment, they used it for Liverage Trading company without informing the investor. 

According to the report, Valle and Bezuidenhout were arrested at their residences in Lenasia and Alberton and appeared in the Lenasia Regional Court in Johannesburg on Tuesday. Both have been charged with fraud and money laundering, and their court hearing will be held on 19 July.

De Lange is currently out on bail for R20,000 ($1,258) while Valle and Bezuidenhout were granted bail at R10,000 ($629).

Crypto Scams on the Rise

As crypto continues to gain traction, bad actors have seen the nascent asset class as a tool to carry out all kinds of criminal activities. In February, Irish law enforcement agents arrested a woman for her involvement in a $1 million crypto scam. 

Last month, Bangkok police arrested six suspects who deceived 500 Chinese and Taiwanese citizens into investing in fraudulent cryptocurrency schemes that led to the loss of the victims’ funds.