Banxso Enters Provisional Liquidation – Daily Star

The Western Cape High Court has placed the CFD trading platform Banxso under provisional liquidation. Judge André le Grange delivered a significant ruling, highlighting the company’s fraudulent and predatory business practices aimed at exploiting vulnerable investors.

This legal action was initiated by 60-year-old pensioner Carol Margaret Wentzel, who lost over R500,000 of her retirement savings through Banxso’s trading platform. Wentzel argued that Banxso’s activities were illegal and void under South African law, claiming the company operated as a criminal organization disguised as a legitimate financial service provider.

In his judgment, Judge Le Grange remarked: “From the evidence presented, I am persuaded that Wentzel has established, on a prima facie basis, that Banxso does not operate within the legal framework, and its business model is unlawful.”

This ruling follows the Financial Sector Conduct Authority’s (FSCA) permanent revocation of Banxso’s financial services license in July. The regulator had provisionally suspended the license in October 2024 in response to a rising number of complaints from investors.

Court documents reveal that over 7,000 investors may have potential claims against the company. Many were enticed by deceptive social media advertisements featuring prominent figures such as Johann Rupert, Patrice Motsepe, Elon Musk, and Nicky Oppenheimer, falsely portrayed as endorsers of trading platforms that promised astonishing returns—some claims suggested transforming R4,700 into over R500,000 in monthly profits.

Banxso has already stated its intention to appeal the ruling. In a press release, the company declared it “completely disagrees with the judgment and is treating this matter with the utmost urgency, actively pursuing all legal options, including appeals.” The statement continued: “We will take all necessary steps to ensure a fair outcome and safeguard client funds from being dissipated.”

The order is provisional, and the case is set to return to court later this year for a decision on whether Banxso will be subjected to final liquidation.

Stay tuned for further updates.

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