BoN freezes ponzi investors’ N$10m

Investors in a pyramid scheme are in limbo after the Bank of Namibia (BoN) froze assets to the tune of approximately N$10 million last Friday.The central bank was able to secure a judgment in its favour through High Court judge Marlene Tommasi.Investors in the Retribute Stitera Private Investment Scheme are now unable to withdraw funds from the scheme run by one Ruaan Smith, who started receiving funds from the public from March 2015, with as much as N$35 million passing under his name, according to a BoN answering affidavit.Explaining the fund’s modus operandi, Smith said the business was initially started through a membership agreement that is drawn up for opportunities via arbitrage on international crypto markets, and that contracts were entered into between a club, which was represented by Smith, and new members.The fund was managed as follows: The founder is responsible for the management of the club and conduct of the affairs of the club; all investments made by members are paid directly to the applicant as the founder; each member will share in the profit and/or loss of the club, proportionate to the capital invested, and any loss on the crypto currency investments will result in a loss for the members, Smith explained to the central bank.According to him, he used an algorithm he developed himself to determine investment opportunities in crypto currency.Lured inThis pyramid scheme contains one of the highest amounts frozen by the BoN. Another notable one is owned by forex traders Michael Amushelelo and Gregory Cloete, in which money was solicited from investors who were lured by promises of high returns on their investments, from September 2018 to October 2019.The state is alleging that the money which investors entrusted to Amushelelo and Cloete, believing their funds were to be traded in foreign exchange markets, was not invested and that later investors&#039; money was used to pay back earlier ones&#039; funds.Investors were allegedly attracted with promises that an investment of N$5 000 would earn 50% interest after two to four months. An investment of N$2 500, for a period of eight months, was supposed to earn investors a pay-out of N$12 654.25.Investors allegedly paid a total of about N$14.7 million to Amushelelo and Cloete in 348 individual transactions, The Namibian reported.According to the state, Amushelelo and Cloete had no independent income reflected in the bank accounts through which investors&#039; money was channelled.

BoN freezes ponzi investors’ N$10m

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Namibian Sun 2025-09-19

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BoN freezes ponzi investors’ N$10m

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Namibian Sun 2025-09-19

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