United African Stokvel

United African Stokvel marketed itself as a modern, digital stokvel that allowed members to pool their funds for investment purposes, promising exceptionally high and unrealistic returns of up to 48% per annum. The company attracted members by claiming to be a legitimate financial services provider. However, an investigation by South Africa's Financial Sector Conduct Authority (FSCA) found it to be operating an illegal deposit-taking scheme with characteristics of a Ponzi scheme. The FSCA issued public warnings against the company and, following a successful application to the High Court, the company was placed into final liquidation in February 2022.