On May 25, 2025, the Namibian High Court ruled that the Bank of Namibia (BoN) was justified in probing CBI Global, a cryptocurrency investment scheme led by Coenie Botha, for violating the Banking Institutions Act. The court’s decision confirms the central bank’s actions, including freezing CBI Global’s and Botha’s bank accounts in 2022, were lawful. This ruling sheds light on the ongoing legal battle surrounding Botha’s alleged Ponzi scheme and its financial misconduct.
What Happened with CBI Global?
The Bank of Namibia launched an investigation into CBI Exchange Namibia, a company linked to CBI Global, after suspecting it operated outside the country’s banking regulations. According to evidence presented in court, Botha misused investor funds, treating CBI Global’s accounts like his personal bank. The central bank’s findings revealed:
- Misuse of Funds: Botha allegedly siphoned off at least $8.59 million from CBI Global accounts for personal use.
- Suspicious Transactions: Money was frequently transferred from CBI Exchange Namibia and a related South African company, CBI X SA, to Botha’s personal account whenever it was low.
- Unrepaid Loans: The investigation uncovered multiple loans made to Botha from company accounts, with no evidence of repayment.
Botha denied the allegations, claiming CBI Global did not collect public deposits. However, the judge dismissed this defense, stating the company’s accounts clearly showed such activities, violating banking laws.
Legal Consequences in Namibia
The court’s ruling validates the Bank of Namibia’s decision to freeze CBI Global’s and Botha’s accounts in 2022. The case now moves to Botha’s criminal proceedings, where he and his wife, Charlotte Murove, face 64 charges. As of June 2024, Namibian authorities have shown limited progress in pursuing these charges, leaving the case unresolved.
Developments in South Africa
In a separate development, South Africa’s Financial Sector Conduct Authority (FSCA) overturned a R216 million ($12.1 million USD) fine imposed on Botha in November 2024. The FSCA did not disclose the reason for this decision, leaving many questions unanswered about the regulatory approach in South Africa.
Why This Matters
The CBI Global ponzi scheme case highlights the risks of unregulated cryptocurrency schemes and the importance of strong oversight by financial authorities. Investors worldwide are drawn to crypto opportunities, but cases like this show how fraudsters can exploit trust, leading to significant financial losses. The Namibian High Court’s ruling reinforces the need for compliance with banking laws to protect consumers.
What’s Next?
The focus now shifts to Botha’s criminal case in Namibia, where authorities will determine the full extent of his liability. Meanwhile, the FSCA’s decision to lift Botha’s fine in South Africa raises concerns about cross-border regulatory consistency in tackling financial misconduct.