Former Africa Bitcoin Corporation (ABC) chief executive Warren Wheatley says a R5 million fine and a 20-year ban against him came from test trades worth only R301.
Wheatley made the claim in an open letter after he resigned as CEO of the JSE-listed company, Moneyweb reported. The Financial Sector Conduct Authority (FSCA) imposed the penalty and the debarment.
“Fifty shares. Three hundred and one rand. A fine of millions. Debarment,” Wheatley wrote in the letter.
According to Wheatley, the case relates to trades in Altvest shares in September 2022. Altvest was the company’s name before it became ABC.
“On 28 August 2026, the FSCA debarred me and imposed a R5 million administrative penalty for conduct relating to orders and trades in Altvest shares in September 2022,” he wrote.
He said he was testing a stockbroker trading platform at the time. He said the platform had not worked properly in the past.
“During the testing, three trades for a combined 50 shares worth a total of R301 were executed,” Wheatley wrote. He added that he has not sold shares in the company since then.
Wheatley said he will ask the Financial Services Tribunal to reconsider the FSCA decision. He will also ask for the sanction to be suspended while the Tribunal looks at the case. He has not admitted any wrongdoing.
Moneyweb said it asked the FSCA to respond to Wheatley’s claims and to comment on whether the ruling was fair. The regulator had not replied when the report was published.
Wheatley was first placed on precautionary leave after the FSCA ruling. He then officially resigned as CEO. Tech entrepreneur Stafford Masie, an executive director of ABC, has taken over as interim CEO.
The FSCA also made rulings against chief investment officer Akshay Karan and Tatum Wheatley, head of media and investor relations. Tatum Wheatley is Warren’s wife and a co-founder of the company.
The board first placed all three executives on precautionary leave for one month, subject to review. The FSCA made no findings, penalties or debarment orders against ABC or any of its subsidiaries.
“Stepping away from the company is deeply difficult,” Wheatley wrote. He said the company was built during a pandemic, using the founders’ own money and many hours of work.
“The process before the Financial Services Tribunal will take time. The company cannot wait for that process to be finalised,” he wrote.
He said staff, shareholders, fund investors and small business clients would be better served by active leadership. He said his resignation was voluntary and did not give up his rights before the Tribunal.
ABC calls itself Africa’s first bitcoin treasury company. It also lends money to small and medium businesses. It is listed on the JSE, with secondary listings on the Namibia Stock Exchange and A2X.
Wheatley said the board can now appoint a new CEO and that he will support that process where he can.
Source: this article is based on reporting by Moneyweb. Image: Moneyweb. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.