Crypto currency dealer in court for fraud

Source: Crypto currency dealer in court for fraud | The Herald

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Nyore Madzianike Senior Court Reporter

A suspected member of one of the syndicates running the bitcoin crypto share scheme, which is suspected of being a Ponzi scheme, has appeared in court on allegations of duping a client of US$3 000 she had invested.

Kelvin Mhindirira (32) appeared at the Harare Magistrates Court charged with fraud on Tuesday. 

He was not asked to plead to the charges when he appeared before magistrate Mr Dennis Mangosi, who remanded him to November 11 for his next routine remand.

The State led by Mr Anesu Chirenje alleged that Mhindirira duped Rachael Chakanyuka (48) of Chishawasha Hills, Harare.

On July 15, it is alleged, Chakanyuka put US$2 000 into the scheme and she was promised to benefit to the tune of US$2 000 per month within three years.

Chakanyuka is said to have initially paid the money to Mhindirira when they met at Joina City in Harare. He then sent her the Hash ID over WhatsApp number 0772 886 372 as proof of payment, which also acted as their contract. 

The court heard that on July 29, Chakanyuka paid another US$1 000 in cash to someone called Deborah for the bitcoin anniversary scheme and a motor vehicle scheme. 

She was promised to benefit US$1 500 after a month and a US$25 000 car after six months. Upon maturity dates, Chakanyuka made follow ups with Mhindirira who failed to give her the money. 

It is alleged that Mhindirira and Deborah later became evasive which led her to report the matter to the police.

Mhindirira was then arrested.