Banxso finally wound up
The Western Cape High Court has confirmed that Banxso should be wound up, bringing to an end months of legal wrangling over whether the company was insolvent and whether it had operated unlawfully.
Moneyweb reports that the judgment, delivered yesterday by Judge André Le Grange, follows a provisional winding-up order granted on 22 August 2025.
For thousands of investors who lost money after being lured by deepfake advertisements and promises of extraordinary returns, the order marks a pivotal turning point.
The Daily Maverick reports that the matter came before court on the return day following a provisional winding-up order granted in August 2025.
A group of investors, including pensioner Carol Wentzel, asked the court to make that order final. The court found that the applicants had established three grounds for winding up Banxso: * It was unable to pay its debts; * It was just and equitable to liquidate the company due to illegality and fraud; and * The company had effectively lost its substratum, meaning it could no longer achieve the purpose for which it was formed.
A Moneyweb investigation found that the company used fake social media advertisements – many featuring deepfakes of prominent figures including Johann Rupert, Patrice Motsepe and Elon Musk – to promote automated AI trading platforms that allegedly promised monthly returns of more than R300 000 from a once-off investment of about R4 700.
The company denied responsibility for such scams at the time. Investors’ claims totalled about R70.4m. A further claim of approximately R67.2m was lodged by Flamingo Clearing House, pushing total admitted liabilities above R137m.
On insolvency, the numbers are stark. The applicants’ claims totalled more than R70m. When a separate claim of R67m was added, admitted liabilities exceeded R137m.
By contrast, Banxso’s available funds in its bank accounts were approximately R69.97m, leaving a shortfall of more than R67m.
DM notes that Banxso argued that it remained solvent and had offered security for certain claims. The court was not persuaded. On a balance of probabilities, it found Banxso to be factually and commercially hopelessly insolvent.
The court also gave weight to the Financial Sector Conduct Authority’s (FSCA’s) comprehensive analysis and the R2bn in administrative penalties imposed on Banxso and its key individuals in December 2025.
Le Grange found compelling evidence that the business was not conducted as represented to the public and that the alleged regulatory ‘clean-up’ was unconvincing given the scale of the misconduct.
Importantly, the court rejected arguments that the liquidation was an abuse of process or that alleged conflicts involving the applicants’ attorneys should derail the matter.
There are also parallel regulatory and potential criminal processes. DM notes that the FSCA has already imposed administrative penalties and debarments.
The Financial Intelligence Centre and the NPA have previously been involved in freezing and preservation actions.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
