Explosive Claims of 'Liquidation Cartel' as Banxso Scandal Deepens

A disturbing pattern of alleged profiteering and questionable practices has emerged in South Africa's financial sector, with online trading platform Banxso exposing what it describes as a systematic attempt to force its liquidation for personal gain.

In an extraordinary sequence of events, the Financial Sector Conduct Authority (FSCA) issued a warning about fraudsters targeting Banxso's clients - but the company has now alleged that the very parties pursuing its liquidation may be connected to the data breach enabling this fraud.

At the centre of these explosive allegations is an unsecured website, banxso.liquidations.africa, which appeared immediately after liquidation proceedings were initiated. This site, reportedly operated by Peddy Tech under Craig Pederson, promoting Herman Bester and Riaan Van Rooyen for nomination as liquidators of Banxso, has been harvesting extensive client data despite displaying stark security warnings about potential data theft.

The most damning revelations concern the financial motivations behind the liquidation attempt. Court documents from the Mirror Trading International (MTI) liquidation – involving many of the same players – reveal a staggering R120 million paid to liquidators, with Bester and Van Rooyen each receiving at least R15 million. The forensic firm Computer Guyz, owned by the same Craig Pederson, pocketed R13.6 million, while law firm Mostert and Bosman received nearly R25 million. Notably, not a single MTI creditor has been paid.

In what appears to be a brazen attempt to prolong proceedings, Mostert and Bosman rejected Banxso's offer of R57 million – funded directly by its directors – which would have guaranteed 100% repayment to the applicants. This rejection came while they simultaneously maintained a freeze on client funds, despite a previous court order directing their release.

The interconnected nature of the parties involved raises serious questions. Pierre Du Toit of Mostert and Bosman, currently pursuing Banxso's liquidation, serves as MTI's legal counsel. The proposed Banxso liquidators, Bester and Van Rooyen, previously appointed Du Toit's firm to the lucrative MTI estate.

Perhaps most troubling is the case of the main applicant, Mrs Wentzel. When Banxso revealed she had actually doubled her money before losing funds through her own trading decisions, the response wasn't to address these concerns – instead, additional applicants were hastily sought.

The FSCA's role has also come under scrutiny. Rather than investigating the unsecured website collecting sensitive client data, or questioning why a substantial settlement offer was rejected, they issued a public warning without first consulting Banxso about potential security breaches.

"This isn't about protecting investors anymore - it's about manufacturing a crisis for profit," said a senior financial analyst speaking on condition of anonymity. "When liquidators earn R120 million while creditors get nothing, and settlement offers are rejected without explanation, we need to ask serious questions about who really benefits from these proceedings."

The timeline raises further red flags. Mostert and Bosman secured a postponement of proceedings to March 2025 while maintaining the freeze on client funds - despite Banxso's additional R57 million guarantee offer. This continued freeze serves no apparent purpose beyond prolonging proceedings and securing potential liquidation fees.

As this scandal unfolds, it paints a disturbing picture of what Banxso terms "predatory practices" within South Africa's financial sector. With millions in potential fees at stake, the question remains: are these liquidation proceedings serving to protect investors, or merely to enrich a well-connected few at the expense of ordinary South Africans?

The March 2025 hearing may provide answers, but for now, the mounting evidence suggests a system where the pursuit of liquidation fees appears to trump actual client outcomes.

IOL