Coinit Trading, alleged pyramid scheme, hit with second preservation order
The Pietermaritzburg High Court has granted the Asset Forfeiture Unit in KZN another preservation order to the value of R48.9 Million against Coinit Trading, that is alleged to have been running a pyramid scheme.
Spokesperson for the AFU in KZN, Natasha Kara, said the assets granted include a mining shaft in Kimberly worth R36 million, an aircraft, shares at an environmental company and property in Danhauser.
According to Kara, Coinit had placed advertisements on its website and in different newspapers calling for people/investors to invest with them. As a result of the adverts, a number of people deposited funds into Coinit’s bank accounts.
Coinit was not authorised to accept deposits from the investors in terms of the Financial Advisory and Intermediary Act and Bank Acts.
"The AFU was previously granted a preservation order worth R106 Million for several of Coinit Trading's immovable properties and vehicles", Kara said.
"The forfeited properties included 11 pieces of land in Dundee, five aircrafts and a luxury SUV. The current preservation orders relate to the purchase of other assets with a total value of R49,8 Million, she said.
