FSCA Initiates New Investigation into Troubled Bitcoin Firm ABC

It’s been a challenging week for JSE bitcoin trailblazer Africa Bitcoin Corporation (ABC), with the latest blow being a new investigation initiated by the Financial Sector Conduct Authority (FSCA) regarding share trades from April and May of this year.

The FSCA’s notice for this new investigation is dated 11 September, and while it does not specify who is under scrutiny, it indicates that the investigation is being conducted under Section 135 of the Financial Sector Regulation Act for potential market manipulation.

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“Upon completion of the investigation, the findings will be forwarded to the Enforcement Deliberation Forum for their decision,” states the FSCA’s letter to ABC.

“They will determine whether to conclude the investigation or proceed with enforcement actions.”

This marks the second investigation into ABC announced by the FSCA in the past two months.

“Notably, the FSCA’s latest notice specifies that the investigation revolves around trading activities executed by individual market participants,” ABC mentions in a statement.

“The notice does not name any individuals being investigated, nor does it imply that ABC or its board engaged in market manipulation, nor does it communicate any findings of misconduct. The investigation is still ongoing, and ABC has not received any final determination or enforcement action at this stage.”

Different timeframe under examination

The current investigation pertains to a different timeframe than the matters addressed in the FSCA decisions revealed by the company on 1 September.

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“The earlier regulatory decisions were related to trading activities dating back to September 2022,” ABC notes.

“This latest investigation focuses on transactions that took place in April and May 2026. The notification about this investigation does not imply any correlation between the two issues, and the mere existence of an investigation should not be construed as an indication of misconduct by any individual or entity.”

Moneyweb has reached out to the FSCA for additional insights.

“The FSCA has confirmed that it is investigating whether specific transactions conducted in the securities of Africa Bitcoin Corporation Limited during the period from April and May 2026 may breach section 80 of the Financial Markets Act.

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

“As this is an active investigation, we are unable to provide further details regarding the matter at present.”

FSCA remains tight-lipped on ‘who the investigation is against’

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

“The FSCA letter does not specify who is being investigated. We were in a closed period at that time, so I wouldn’t have been involved in any trades then.”

Interestingly, the timeframe under review coincides with a three-for-one share split for ABC, during which the share price fell and later rebounded.

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

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

Wheatley has consistently contested the FSCA’s findings, stating that the transactions amounted to just R301 and originated in September 2022, when the company was known as Altvest and was listed on the Cape Town Stock Exchange.

He claims he was testing a malfunctioning stockbroking platform to verify if trades executed correctly and denies any intention to manipulate the share price.

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

Listen/read: Wheatley contests 20-year ban over R301 in ‘test trades’

Wheatley’s wife, former Miss SA Tatum Keshwar-Wheatley, and former chief investment officer Akshay Karan, who faced a R2 million fine, were also debarred.

Tatum Keshwar-Wheatley and her company, Tatum Wheatley Investments, received a R3 million penalty.

All three are appealing the FSCA debarrment and penalties at the Financial Services Tribunal.

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

Earlier this week, ABC announced via a Sens notice that interim CEO Stafford Masie and three independent directors – Norma Sephuma, Snowy Masakale, and GG Alcock – resigned after allegedly being coerced by Wheatley to make room for two new directors.

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

Company operations ongoing

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

It now holds approximately 5.53 BTC (valued at R7.6 million).

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

ABC affirms that its executive management team remains dedicated to ensuring operational continuity and upholding the company’s responsibilities to its employees, borrowers, shareholders, institutional funders, and other stakeholders.

“The organization’s core business activities and ongoing governance and regulatory remediation efforts continue to be our top priorities.”

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