TechFlow news, October 17 — According to Cryptonews, the South African Financial Sector Conduct Authority (FSCA) announced the temporary suspension of Banxso's Financial Services Provider license on October 17. The FSCA stated that Banxso is suspected of using deepfake technology to create advertisements and employing aggressive sales tactics, making unrealistic return promises that led numerous clients to suffer significant losses.
The FSCA indicated that Banxso may have been involved in producing deepfake ads featuring prominent billionaires such as Elon Musk, Johann Rupert, and Nicky Oppenheimer. These ads were widely circulated on social media, misleading investors into fraudulent schemes. While many customers reported losses after investing, Banxso has denied any connection to these advertisements.
To address these issues, the FSCA has notified the National Prosecuting Authority’s (NPA) Asset Forfeiture Unit and the Financial Intelligence Centre (FIC), requesting the freezing of seven Banxso accounts. In early October, the FIC froze Banxso's bank accounts, a decision upheld by the Western Cape High Court on October 8. On October 14, the National Director of Public Prosecutions (NDPP) obtained a preservation order over the company’s funds under the Prevention of Organized Crime Act.
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