FSCA launches fresh investigation into beleaguered bitcoin company ABC

It’s been a week from hell for JSE bitcoin pioneer Africa Bitcoin Corporation (ABC), with the latest missile coming in the form of a fresh investigation being launched by the Financial Sector Conduct Authority (FSCA) into share trades in April and May this year.

The FSCA notice of the new investigation is dated 11 September, and does not name who is being investigated, other than to say the investigation is being conducted in terms of Section 135 of the Financial Sector Regulation Act over possible market manipulation.

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“Once the investigation is completed, the findings will be reported to the Enforcement Deliberation Forum to take a decision,” reads the FSCA letter to ABC.

“They will decide whether to close the investigation or proceed with enforcement action.”

This is the second investigation into ABC announced by the FSCA in the last two months.

“Importantly, the FSCA’s [latest] notification identifies the subject of the investigation as trading activities undertaken by individual market participants,” says ABC in a statement.

“The notification does not identify the individuals under investigation, allege that ABC or its board engaged in market manipulation, or communicate any findings of wrongdoing. The investigation remains ongoing, and ABC has not been notified of any final determination or enforcement action arising from it.”

Different period being looked at

The latest investigation concerns a different period of trading from the matters addressed in the FSCA decisions announced by the company on 1 September.

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“Those earlier regulatory decisions related to trading activities dating back to September 2022y,” says ABC.

“The current investigation concerns transactions during April and May 2026. The notification of this investigation does not establish any connection between the two matters, nor should the existence of an investigation be interpreted as evidence of wrongdoing by any individual or entity.”

Moneyweb approached the FSCA for further clarification.

“The FSCA confirms that it registered an investigation relating to whether certain transactions executed in the securities of Africa Bitcoin Corporation Limited during the period April and May 2026 constitute contraventions of section 80 of the Financial Markets Act.

“The investigation was registered on 4 September 2026,” it adds.

“This is an ongoing investigation, and as such we cannot provide any additional information regarding the matter at this time.”

FSCA doesn’t say ‘who investigation is against’

Former ABC CEO Warren Wheatley tells Moneyweb he only became aware of the latest investigation on Wednesday (14 October).

“The FSCA letter doesn’t say who the investigation is against. We were in a closed period at the time so I wouldn’t have touched shares at the time.”

Curiously, the period under investigation coincides with a three-for-one share split in ABC shares, during which time the share price dropped and subsequently recovered.

The latest FSCA investigation follows the resignation of all but two board members last week, and a 20-year debarment on former CEO Warren Wheatley over findings of share manipulation dating back to 2022.

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Read: I was fined R5m and debarred over R301 in test trades, says Wheatley

Wheatley has repeatedly disputed those FSCA findings, telling Moneyweb the transactions totalled just R301 and dated back to September 2022, when the company was called Altvest and was listed on the Cape Town Stock Exchange.

He says he was testing a faulty stockbroking platform to see if the trades executed properly and denies there was no intention to manipulate the share price.

A R5 million penalty was imposed jointly on Wheatley and his company WGW Capital.

Listen/read: Wheatley challenges 20-year debarment over R301 in ‘test trades’

Also debarred were Wheatley’s wife, former Miss SA Tatum Keshwar-Wheatley, and former chief investment officer Akshay Karan, who was fined R2 million.

Wheatley’s wife and her company Tatum Wheatley Investments were hit with a R3 million penalty.

All three are challenging the FSCA debarment and penalties at the Financial Services Tribunal.

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Read: Former Miss SA Tatum Keshwar-Wheatley terminates services at Africa Bitcoin Corp

Earlier this week, ABC issued a Sens notice informing the market that interim CEO Stafford Masie and three independent directors – Norma Sephuma, Snowy Masakale and GG Alcock – resigned after reportedly being pressured by Wheatley to make way for two new directors.

The resignations mean ABC is left with just two directors: Robin Coode, independent non-executive director, and Jonathan Phillips, financial director.

Company operations continue

ABC was the first JSE company to adopt bitcoin (BTC) as a treasury reserve asset.

It currently holds around 5.53 BTC (worth R7.6 million).

The company also provides financial services, growth capital and loans to small and medium-sized businesses.

ABC says its executive management team remains focused on maintaining operational continuity and fulfilling the company’s responsibilities to “employees, borrowers, shareholders, institutional funders and other stakeholders”.

“The company’s underlying business activities and ongoing governance and regulatory remediation initiatives remain priorities.”

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