Retribute Stitera rejects pyramid scheme tag
'Judge did not uphold BoN allegation'
The manager of a crypto currency investment scheme that has been frozen by the Bank of Namibia says it is in no way a pyramid scheme.
The Retribute Stitera Private Investment Scheme, whose investors are unable to withdraw funds from the scheme run by one Ruaan Smith, of which the Bank of Namibia has been able to freeze assets of up to N$10 million, has denied being a pyramid scheme.
It follows a recent victory scored by the central bank to have the scheme’s funds frozen, denying its members a share of the N$10 million held with various commercial banks.
Reacting to a recent article in Namibian Sun, lawyer Bradley Basson, who is representing Ruaan Smith, said while the ruling had gone in favour of the central bank, Retribute Stitera Private Investment Scheme was in no way a pyramid scheme.
“It is correct that BoN in its Answering Affidavit filed of record alleged that it had reasons to believe that our client engaged in conduct in violation of sections 5 and 2 (4) and 55A of referenced Act. This allegation is however just that, an allegation,” Basson said.
He added that High Court Judge Marlene Tommasi never made a finding that his client, Smith, had run a pyramid scheme.
“The fact that the judgment was not in our client’s favour does not elevate BoN’s allegation that our client is conducting a pyramid scheme into fact. There is a vast difference between the two,” Basson said.
Investors in the Retribute Stitera Private Investment Scheme are now unable to withdraw funds from the scheme run by Smith, who started receiving funds from the public in March 2015, with as much as N$35 million passing under his name, according to a BoN answering affidavit.
Modus operandi
Explaining the fund’s modus operandi, Smith said the business was initially started through a membership agreement that is drawn up for opportunities via arbitrage on international crypto markets, and that contracts were entered into between a club, which was represented by Smith, and new members.
The fund was managed as follows: The founder is responsible for the management of the club and conduct of the affairs of the club; all investments made by members are paid directly to the applicant as the founder; each member will share in the profit and/or loss of the club, proportionate to the capital invested, and any loss on the crypto currency investments will result in a loss for the members, Smith explained to the central bank.
According to him, he used an algorithm he developed himself to determine investment opportunities in crypto currency.
It follows a recent victory scored by the central bank to have the scheme’s funds frozen, denying its members a share of the N$10 million held with various commercial banks.
Reacting to a recent article in Namibian Sun, lawyer Bradley Basson, who is representing Ruaan Smith, said while the ruling had gone in favour of the central bank, Retribute Stitera Private Investment Scheme was in no way a pyramid scheme.
“It is correct that BoN in its Answering Affidavit filed of record alleged that it had reasons to believe that our client engaged in conduct in violation of sections 5 and 2 (4) and 55A of referenced Act. This allegation is however just that, an allegation,” Basson said.
He added that High Court Judge Marlene Tommasi never made a finding that his client, Smith, had run a pyramid scheme.
“The fact that the judgment was not in our client’s favour does not elevate BoN’s allegation that our client is conducting a pyramid scheme into fact. There is a vast difference between the two,” Basson said.
Investors in the Retribute Stitera Private Investment Scheme are now unable to withdraw funds from the scheme run by Smith, who started receiving funds from the public in March 2015, with as much as N$35 million passing under his name, according to a BoN answering affidavit.
Modus operandi
Explaining the fund’s modus operandi, Smith said the business was initially started through a membership agreement that is drawn up for opportunities via arbitrage on international crypto markets, and that contracts were entered into between a club, which was represented by Smith, and new members.
The fund was managed as follows: The founder is responsible for the management of the club and conduct of the affairs of the club; all investments made by members are paid directly to the applicant as the founder; each member will share in the profit and/or loss of the club, proportionate to the capital invested, and any loss on the crypto currency investments will result in a loss for the members, Smith explained to the central bank.
According to him, he used an algorithm he developed himself to determine investment opportunities in crypto currency.
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Namibian Sun
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