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.
The judgment, delivered on Monday by Judge J Le Grange, follows a provisional winding-up order granted on 22 August 2025.
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The application was brought by a group of investors who traded contracts for difference (CFDs) on Banxso’s platform and suffered substantial losses.
They argued that the company ran an illegal and fraudulent scheme and was unable to repay debts owed to clients.
Moneyweb has previously reported extensively on Banxso’s marketing practices and business activities.
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.
The court accepted that the applicants had established grounds for winding up the company on three bases:
- Commercial insolvency;
- Illegality and fraud; and
- Loss of the company’s business foundation (“substratum”)
According to the judgment, Banxso opposed the application and denied wrongdoing.
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Licence withdrawn
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.
The regulator found the company had materially contravened financial sector laws and posed a risk to the public.
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.
The court found that Banxso’s admitted liabilities far exceeded its available cash.
Investors’ 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.
Banxso’s 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.
Findings on alleged unlawful conduct
The judgment records extensive regulatory findings of illegality.
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“The scale of the alleged illegality here – affecting thousands of investors and involving hundreds of millions of rand – is vast,” Le Grange noted.
The FSCA’s analysis provides compelling proof of Banxso’s “co-mingling” of client funds with operational money, the channelling of funds to cryptocurrency wallets under Banxso’s control, and making false representations to clients about its licensing status.
The FSCA had previously imposed administrative penalties totalling about R2 billion on the company and two directors, according to the court record.
The court ordered that Banxso be placed under final liquidation and that the applicants’ legal costs be paid from the liquidation estate.
Banxso responds
Banxso spokesperson Sean Newman noted in a statement that the liquidation order “opens the door to further legal processes”.
“Our 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,” he said.
Newman also noted that “stakeholders” remain engaged, measured and focused on seeing the matter “through every appropriate legal channel available”.
WATCH: Banxso defies licence suspension [Oct 2024]
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