There was an interesting article on Moneyweb the last couple days about a company called DefenceX, setup by Chris Walker, which has been shut down while it’s being investigated for being a pyramid scheme.
Apparently, people were promised a huge return on DefenceX, a return so large, that most people should have realised it as being a potential pyramid scheme before they invested.
What I find fascinating is the comments on Moneyweb on all the articles on DefenceX. There seems to be a comments war taking place between those people that clearly see DefenceX as a pyramid scheme, and the other side, those that believe Chris Walker is operating a legit business, and that the banks, government, rich etc are the reason for shutting down DefenceX, as they are worried about too many people becoming wealthy.
And one of the comments was from a guy that was totally honest that he knew it was a pyramid scheme, but was still prepared to invest R40k, as he believed he was early enough in the business, and would get his money out before it went under.
It’s really sad when I read stories like this about people that can’t afford to lose cash, losing cash. And unfortunately, this won’t be the last time.