Mfundo Manci Sentenced to 10 Years for Cryptocurrency Investment Scheme

Durban trader Mfundo Manci has been sentenced to a decade in prison after promising investors returns of up to 3,000% through an online investment business, according to the National Prosecuting Authority (NPA). The Durban Specialised Commercial Crimes Court handed down the sentence after convicting him of fraud and contravening the Banks Act. NPA spokesperson Natasha Ramkisson-Kara said Manci, 33, initially bought cryptocurrency before launching short- and long-term investment promotions. He recruited two women he knew to help attract clients, offering them commissions for referrals. The women recruited investors without knowing, the NPA said, that the operation was not investing the money as represented. Manci also brought in investors directly through his own communications. Some clients received their original funds and profits, but the payments came from money supplied by later investors, Ramkisson-Kara said. Manci traded for himself rather than investing the funds received from clients. He registered a company called Crypto Mzansi Group (Pty) Ltd and opened accounts with several banks as part of the scheme. The court imposed 15 years for the fraud counts, with five years suspended for five years on condition that Manci is not convicted of fraud or theft during that period. He also received a five-year sentence for contravening the Banks Act. That term will run concurrently with the fraud sentence, the NPA said. The case has also resulted in the recovery of money linked to the operation. In August 2022, the Asset Forfeiture Unit obtained an order preserving Manci’s bank accounts, and R4.5 million was recovered. The NPA’s account of the case describes an investment pitch built around eye-catching returns, while the court’s sentence sets out the consequences of the fraud convictions.