The FSCA has provisionally withdrawn the FSP licence of Banxso (Pty) Ltd, a Cape Town-based online trading platform, citing concerns over potential harm to clients and the public.
The move follows the FSCA’s ongoing investigation into Banxso’s activities and its alleged involvement with deepfake advertisements featuring well-known figures such as Elon Musk and Johann Rupert.
The adverts, which falsely promised substantial investment returns, were linked to a shadowy entity called Immediate Matrix. Last December, the FSCA cautioned the public against doing financial services business with Immediate Matrix.
In April, the Authority announced it had initiated an investigation into possible contraventions of financial sector laws by Banxso after numerous complaints about its conduct.
Read: Banxso: FSCA to investigate allegations of financial misconduct
The FSCA said its provisional action was based on preliminary findings that raise concerns about Banxso’s operations. The regulator cited apparently aggressive and high-pressure sales tactics, promises of unrealistically high returns, failure to conduct appropriate risk and needs analyses before placing clients in products, and significant financial losses suffered by clients as key factors prompting the licence withdrawal.
The Authority emphasised that the licence withdrawal is provisional, pending further investigation and further submissions by Banxso that could lead to the lifting of the suspension.
Banxso, which came to prominence through sponsoring Bafana Bafana and UFC champion Dricus du Plessis, has denied any involvement with the controversial adverts.
In February, Moneyweb reported that Banxso seemed to be profiting from the deepfake adverts, which promised absurd profits, such as R300 000 a month from a once-off investment of R4 700. According to Moneyweb’s investigation, people who responded to the ads and signed up on Immediate Matrix’s platforms were quickly enrolled as Banxso customers.
Manuel de Andrade, Banxso’s chief operating officer, has stated that the company has no connection to the adverts and claimed it was a victim of hacking.
Adding to Banxso’s problems, the Financial Intelligence Centre (FIC) placed a hold on seven Banxso bank accounts on 2 October. The FIC took this step under section 34 of the Financial Intelligence Centre Act, suspecting that the transactions in these accounts were the proceeds of unlawful activities.
The FIC’s decision followed the FSCA’s request to freeze the accounts and alert the Asset Forfeiture Unit of the National Prosecuting Authority.
Banxso responded by filing an urgent application in the High Court in Cape Town to lift the freeze on its accounts, claiming that R72m was tied up in the frozen accounts. However, the court dismissed Banxso’s application on 8 October, and the hold remains in place.
On 14 October, the National Director of Public Prosecutions successfully obtained a preservation order for the funds under section 38 of the Prevention of Organised Crime Act, reinforcing the legal grip on Banxso’s assets.
Banxso responds
In a statement yesterday, Banxso “vehemently” denied all allegations of financial misappropriation and/or the maladministration of client accounts, as well as any allegations in respect of deepfake advertisements and “any impropriety related thereto”.
“The company maintains that this is a misstatement of fact, which will be fully ventilated in the appropriate forums as more details are made available to us.”
Banxso said it was committed to ventilating all the relevant facts that may assist the FSCA in finalising its investigations “with a positive outcome towards the company and its clients”.
The statement said Banxso is engaging with relevant stakeholders, together with the FSCA, to gather all the necessary facts and understand the full scope of the situation.
The company said it is committed to transparency and regulatory compliance across all its operations.
“Moreover, the company’s primary focus remains resolute on protecting clients’ interests at all costs, and, as such, it will do everything in its power to ensure business continuity as far as possible within the confines of the FSCA’s regulatory processes.”
bankxo has stolen all our money and shut down all account with no way to contact anyone is there anyone who can help us. i have documentation and proof of every interaction!
I am a victim of Banxso and already lost R9,000. I have proof of all correspondence I had with them.
I am a victim of Banxso and lost R9 000. I have proof of all my correspondence with them should you need any information.
I ha185000.00 invest what now how do go about this
Hulle het my deposito ook gevat.
Banxso also committed cybercrime by filing fake Digital Millennium Copyright Act (DMCA) notices in an effort to “…hide a range of adverse news, from its deceptive marketing practices and customer complaints to its troubling connections with the Banc de Binary scam and ongoing regulatory scrutiny by the FSCA. These efforts to suppress critical information have only added to the growing distrust surrounding the company’s operations…” Read: https://www.fraudadviser.com/banxso/
I lost my deposit in 2023..I had numerous calls from the rude obnoxious so called managers to put more money.. i closed the account and blocked all the no’s they used..just lucky i used the minimum deposit.
This is the FSCA’s publication: https://www.fsca.co.za/News%20Documents/FSCA%20Press%20Release%20-%20The%20FSCA%20provisionally%20withdraws%20the%20FSP%20licence%20of%20Banxso%20(Pty)%20Ltd.pdf
(For some reason it does not appear immediately on Google search results. So anyone looking for it, here it is)
I am a victem of 425 000 life savings
How do I fet my money back
R300 000 that I have been defrauded of on this Banxso platform. If anyone comes right with some information regarding refunds please reach out/reply. Much appreciated.
So many people on here complaining about being scammed. You were greedy. You are grown ass adults who refused to learn the lesson of ‘if it is too good to be true, it is.’ Don’t come play victim. You guys were idiots.
Dear Mr Holloway, the ‘greedy’ ones are in fact the criminal directors, and the minions who work for them, who carry out these fraudulent ponzie schemes, who deceive and lie to the public about the product or service that they provide, wiping out some of the most vulnerable people in our society, leading some people to commit suicide. What these criminal entities like Banxso are doing to normal people, is disgusting. You clearly do not even conceive the magnitude or consequences of these criminals’ cunning and deceptive ways.
I deposited R4800.00 into Banxso Acc in November 2023. A few days later I requested cancellation as I thought I was dealing with the Rupert AI Algorythm Program. Since them I have had many calls from so called “Success Managers” many pushy or rude! I have never traded & continuously request return of my funds with no results! They are devious untrustworthy thieves. Please help.
Arthur Allen
0825671274
arch.allen45@ co.za
This is so unfortunate for those victims, when you can get access to forex. Check my Instagram profile lets communicate better bphosa_fx… stay safe
Watch this: https://youtu.be/AxtRcCtCJuE (Banxso Exposed: Unveiling a Financial Scam)
I was scamed of R20 000.
The Central Trading predictions were wrong 28 times in succession.
I think that is the culprit.
An investigation into that might be something worthwhile.
Andre
I made a deposit of R4600 in September 2024, but I requested a cancelation, as I thought I was going to deal with a Johan Rupert company.
I still have not received my deposit back.
Please help
I lost R250000 to them. They are supposed to help you trade but they trade so that you loose all your money. For those of us wanting to learn how to trade we are mislead by them . Big scam . Can we claim our loses?