Regulators are belatedly turning up the heat on Crowd1 in South Africa.

The latest regulatory body to announce it is investigating the Ponzi scheme is the National Consumer Commission (NCC).

As per their website, the NCC

is the primary regulator of consumer-business interaction in South Africa.

South African media are
reporting
the NCC

has confirmed that it received its first complaint against Crowd1.

The NCC will now investigate the business to determine if there are grounds to launch a formal investigation.

Crowd1 has been on the NCC’s radar since at least May 2020. On May 14th the NCC
informed MoneyWeb
they were not investigating the company.

Rather than act of their own accord, as permitted by law, the NCC has waited for a consumer complaint. South Africa’s FSCA put out its own
Crowd1 fraud warning
earlier this week.

In the meantime Crowd1 has spread like wildfire across South Africa. Alexa currently ranks the company’s website as the seventeenth most visited website in the country.

Many Crowd1 investors recently became
disillusioned with the Ponzi scheme
, following quarterly returns of €0.01 EUR paid on €2 EUR investment positions.

Financial losses due to South African authorities’ inaction have yet to be determined.

🤖 Quick Answer

What is the National Consumer Commission (NCC) and what role does it play in South Africa?
The NCC is the primary regulatory body overseeing consumer-business interactions in South Africa. It protects consumer rights and enforces fair trading practices by investigating complaints and determining whether formal investigations into alleged violations should be initiated.

Why did the NCC's investigation into Crowd1 take so long to commence?
The NCC had been aware of Crowd1 since May 2020 but did not act independently. Instead, it waited for a formal consumer complaint before initiating investigation procedures, despite having legal authority to investigate on its own initiative.

What regulatory status does Crowd1 hold according to the announcement?
Authorities have classified Crowd1 as a Ponzi scheme. The NCC's investigation will determine whether sufficient grounds exist to launch a formal investigation into the company's business practices and alleged fraudulent activities.

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