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The Western Cape High Court has ordered that online trading platform operator Banxso (Pty) Ltd be placed into final liquidation, concluding that the company is insolvent, operated unlawfully, and can no longer function as a viable business.<\/p>\n
The judgment, delivered on Monday by Judge J Le Grange, follows a provisional winding-up order granted on 22 August 2025.<\/p>\n
Read:
Banxso victim launches liquidation application [Oct 2024]
FSCA slaps Banxso and directors with R2bn penalty, refers matter to police [Dec 2025]
Liquidators seize documents and laptops in raid on Banxso offices [Dec 2025]<\/p>\n
The application was brought by a group of investors who traded contracts for difference (CFDs) on Banxso\u2019s platform and suffered substantial losses.<\/p>\n
\nThey argued that the company ran an illegal and fraudulent scheme and was unable to repay debts owed to clients.<\/p>\n<\/blockquote>\n
Moneyweb has previously reported extensively on Banxso\u2019s marketing practices and business activities.<\/p>\n
A Moneyweb investigation found that the company used fake social media advertisements \u2013 many featuring deepfakes of prominent figures including Johann Rupert, Patrice Motsepe and Elon Musk \u2013 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.<\/p>\n
The company denied responsibility for such scams at the time.<\/p>\n
The court accepted that the applicants had established grounds for winding up the company on three bases:<\/p>\n
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- Commercial insolvency;<\/li>\n
- Illegality and fraud; and<\/li>\n
- Loss of the company\u2019s business foundation (\u201csubstratum\u201d)<\/li>\n<\/ul>\n
According to the judgment, Banxso opposed the application and denied wrongdoing.<\/p>\n
\n\nADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Licence withdrawn<\/strong><\/p>\n
Banxso had been a licensed financial services provider until the Financial Sector Conduct Authority (FSCA) withdrew its licence, initially provisionally in October 2024 and finally in July 2025.<\/p>\n
The regulator found the company had materially contravened financial sector laws and posed a risk to the public.<\/p>\n
The applicants in the court action argued that Banxso had stopped trading, had no employees or business premises, could not legally conduct its former business, and had its client trading accounts closed.<\/p>\n
\nThe court found that Banxso\u2019s admitted liabilities far exceeded its available cash.<\/p>\n<\/blockquote>\n
Investors\u2019 claims totalled about R70.4 million. A further claim of approximately R67.2 million was lodged by Flamingo Clearing House, pushing total admitted liabilities above R137 million.<\/p>\n
Banxso\u2019s available funds in bank accounts were estimated at about R69.97 million, leaving a shortfall of more than R67 million. While Banxso offered to provide security for certain claims, the court found this did not demonstrate solvency.<\/p>\n
Findings on alleged unlawful conduct<\/strong><\/p>\n
The judgment records extensive regulatory findings of illegality.<\/p>\n
\n\nADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
\u201cThe scale of the alleged illegality here \u2013 affecting thousands of investors and involving hundreds of millions of rand \u2013 is vast,\u201d Le Grange noted.<\/p>\n
The FSCA\u2019s analysis provides compelling proof of Banxso\u2019s \u201cco-mingling\u201d of client funds with operational money, the channelling of funds to cryptocurrency wallets under Banxso\u2019s control, and making false representations to clients about its licensing status.<\/p>\n
\nThe FSCA had previously imposed administrative penalties totalling about R2 billion on the company and two directors, according to the court record.<\/p>\n<\/blockquote>\n
The court ordered that Banxso be placed under final liquidation and that the applicants\u2019 legal costs be paid from the liquidation estate.<\/p>\n
Banxso responds\u00a0<\/strong><\/p>\n
Banxso spokesperson Sean Newman noted in a statement that the liquidation order \u201copens the door to further legal processes\u201d.<\/p>\n
\u201cOur position remains consistent. The protection of clients and the responsible safeguarding of stakeholder interests continue to guide every decision. We remain committed to pursuing all lawful avenues available within the framework of South African law to ensure that rights are properly exercised and that the interests of affected parties are protected,\u201d he said.<\/p>\n
Newman also noted that \u201cstakeholders\u201d remain engaged, measured and focused on seeing the matter \u201cthrough every appropriate legal channel available\u201d.<\/p>\n
WATCH: Banxso defies licence suspension [Oct 2024]<\/p>\n
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