# Deepfake Musk and Rupert ads funnelled South Africans to Banxso; FSCA pulls licence and fines it R2bn

Source: https://www.bankingnewsai.com/ai-incidents/banxso-2024-deepfake-ad-investor-losses
Last updated: Oct 21, 2026

Banxso (Pty) Ltd · AI used against the institution · severity 4 of 5

From early 2024 deepfake adverts showing Elon Musk, Johann Rupert and other public figures promoted an "Immediate Matrix" AI trading app, and South Africans who registered were onboarded as clients of the FSCA-licensed CFD platform Banxso, Moneyweb and the Mail & Guardian reported. Per the FSCA, it provisionally withdrew Banxso's licence in October 2024 based partly on "its possible association with the Immediate Matrix deepfake advertisements", made the withdrawal final in July 2025, and on 9 December 2025 imposed R2 billion in penalties after finding that Banxso misappropriated client funds and misled clients, referring the matter to police. Banxso denied any link to the adverts and said it would challenge the penalties. The Western Cape High Court placed it in final liquidation in March 2026.

## Key facts

|  |  |
| --- | --- |
| Date | Jan 2024 (disclosed Feb 23, 2024) |
| Institution | Banxso (Pty) Ltd |
| Country | South Africa |
| AI system | Deepfake video adverts with cloned voices of public figures (third-party 'Immediate Matrix' campaign; tool not identified) |
| AI? | Machine-learning system (inferred from the record) — The sources describe a machine-learning model; nobody on the record labelled it AI. |
| Category | Deepfake fraud (AI used against the institution) |
| Status | Regulator finding |
| Severity | 4 of 5 — Large losses across many customers and a severe regulatory consequence: hundreds of investors claimed losses above R115 million by October 2024, the FSCA withdrew the firm's licence, imposed about R2 billion in penalties and referred the matter to police, and the company was liquidated. |

## What happened?

On 19 December 2023 the FSCA warned the public against Immediate Matrix, which it said was not authorised and had used images of Elon Musk and Patrice Motsepe in advertising without their consent, "a so-called deepfake". In February 2024 a Moneyweb investigation reported that people who responded to deepfake videos in which Musk and Rupert "announced" an AI trading app promising up to R300,000 a month from a R4,700 investment were immediately registered as Banxso customers. Moneyweb's own test registrants received Banxso login details and calls from its agents. [1][5]

In March 2024 the Mail & Guardian reported that more than 20 people had complained to the FSCA about losses totalling more than R10 million on the Banxso platform after clicking deepfake adverts that used AI-generated cloned voices of Musk, Rupert, Nicky Oppenheimer and SABC anchor Leanne Manas. Investors alleged that Banxso "success managers" pressed them to deposit more, including pension savings. By October 2024 about 220 people had told Moneyweb they had lost more than R115 million, virtually all saying they were onboarded after registering on fake ads. [6][7]

Per the FSCA, it provisionally withdrew Banxso's licence on 16 October 2024 on preliminary findings about "its possible association with the Immediate Matrix deepfake advertisements", aggressive sales techniques, promises of unrealistic returns and material client losses; the Financial Intelligence Centre had frozen seven Banxso bank accounts. The FSCA made the withdrawal final on 4 July 2025, finding that Banxso misappropriated client funds, gave false or misleading information and did not act in clients' best interests. [2][3]

On 9 December 2025 the FSCA imposed administrative penalties of R2 billion on Banxso and two directors jointly and severally, a further R16 million on the company and fines of R5 million to R20 million on other key individuals, debarred four of them for 30 years and one for 10 years, and reported the matter to the South African Police Service. The Western Cape High Court placed Banxso in provisional liquidation on 22 August 2025 and final liquidation on 2 March 2026; Moneyweb later reported that court papers put the number of investors at more than 7,000. [4][8][9][10]

## Timeline

- Dec 19, 2023 — FSCA warns the public against Immediate Matrix and its deepfake adverts using Elon Musk and Patrice Motsepe. [1]
- Feb 23, 2024 — Moneyweb reports that people registering via the deepfake Musk and Rupert ads become Banxso customers. [5]
- Mar 16, 2024 — Mail & Guardian reports more than 20 FSCA complaints alleging over R10 million in losses; Banxso denies responsibility for the ads. [6]
- Oct 16, 2024 — FSCA provisionally withdraws Banxso's licence, citing its possible association with the Immediate Matrix deepfake ads. [2]
- Jul 4, 2025 — FSCA makes the licence withdrawal final. [3]
- Dec 9, 2025 — FSCA imposes R2 billion in penalties, debars key persons and refers the matter to police. [4]
- Mar 2, 2026 — Western Cape High Court places Banxso in final liquidation. [9]

## What was the impact?

- Financial: More than R115 million claimed by about 220 investors who contacted Moneyweb (October 2024); admitted liabilities above R137 million in the liquidation
- Customers: More than 7,000 investors, according to court papers cited by Moneyweb
- Other: FSCA administrative penalties of R2 billion plus R51 million in further fines; licence withdrawn; liquidation. [4][7][9][10]

## How did Banxso (Pty) Ltd respond?

Banxso told the Mail & Guardian in March 2024 that the adverts "were created and disseminated by third parties with no affiliation to Banxso" and that it was compensating clients directed to it by the misleading ads; in court papers it said R14.1 million had been repaid to Immediate Matrix-referred clients. After the December 2025 penalties it said it was "exploring all available mechanisms to address what we believe to be fundamental concerns with this outcome". [6][7][8]

## What was the outcome?

Licence withdrawn (final, July 2025); R2 billion in FSCA penalties and debarments (December 2025) with a referral to the South African Police Service; final liquidation ordered on 2 March 2026. As of June 2026 liquidators had recovered about R113 million, and a review application by Banxso's former CFD liquidity provider had stalled the process, Moneyweb reported. [3][4][9][10]

## FAQ

### How were deepfake ads linked to Banxso?

Moneyweb found in February 2024 that people who registered through deepfake Musk and Rupert ads for "Immediate Matrix" were immediately set up as Banxso clients. The FSCA cited Banxso's "possible association with the Immediate Matrix deepfake advertisements" when it provisionally withdrew its licence in October 2024. Banxso denied any link.

### How much money did Banxso investors lose?

About 220 people told Moneyweb by October 2024 that they had lost more than R115 million. In the liquidation, admitted liabilities exceeded R137 million, and court papers cited by Moneyweb put the number of investors above 7,000; a full loss figure has not been published.

### Did the regulator act against Banxso?

Yes. The FSCA withdrew Banxso's licence provisionally in October 2024 and finally in July 2025, and on 9 December 2025 imposed R2 billion in administrative penalties, fined and debarred key persons, and reported the matter to the South African Police Service.

### Were the Banxso adverts made with AI?

The FSCA described the Immediate Matrix adverts as deepfakes, and the Mail & Guardian reported that they used AI technology to clone the voices of Elon Musk, Johann Rupert and others. The tool used has not been identified, and no source shows Banxso created them.

## Sources

1. [FSCA issues public warning against Immediate Matrix](https://www.fsca.co.za/_api/cr3ad_newses(6a3a03bb-fa5f-f111-a826-7c1e5277ebae)/cr3ad_document/$value) — Financial Sector Conduct Authority, Dec 19, 2023 (official): "The FSCA suspects that Immediate Matrix are using the images of these well know personalities without their consent (a so-called deepfake)."
2. [The FSCA provisionally withdraws the FSP licence of Banxso (Pty) Ltd](https://www.fsca.co.za/_api/cr3ad_newses(b98764cc-fa5f-f111-a826-7c1e5277e2e0)/cr3ad_document/$value) — Financial Sector Conduct Authority, Oct 16, 2024 (official): "The provisional withdrawal is based on preliminary investigation findings regarding the activities of Banxso and its possible association with the Immediate Matrix deepfake advertisements."
3. [The FSCA finally withdraws the FSP licence of Banxso (Pty) Ltd](https://www.fsca.co.za/_api/cr3ad_newses(c93e780c-bbdb-f011-8544-000d3ab44730)/cr3ad_document/$value) — Financial Sector Conduct Authority, Jul 4, 2025 (official): "The investigation findings included that Banxso, inter alia, misappropriated client funds, provided false and/or misleading information to clients and to the FSCA, and did not act in the best interests of clients."
4. [The FSCA takes regulatory action against Banxso (Pty) Ltd and its Key Persons](https://www.fsca.co.za/_api/cr3ad_newses(3b25f8de-fa5f-f111-a826-7ced8d48110a)/cr3ad_document/$value) — Financial Sector Conduct Authority, Dec 9, 2025 (official): "The Financial Sector Conduct Authority (FSCA) has imposed administrative penalties of R2 billion on Banxso (Pty) Ltd (Banxso), and its directors Mr Harel Adam Sekler (Sekler), and Mr Warwick David Sneider (Sneider), jointly and severally."
5. [Banxso – beneficiary or victim of 'R4 800' Musk and Rupert scams?](https://www.moneyweb.co.za/in-depth/investigations/banxso-beneficiary-or-victim-of-r4-800-musk-and-rupert-scams/) — Moneyweb, Feb 23, 2024 (news): "However, a Moneyweb investigation found that individuals who react to the ads and register on Immediate Matrix platforms immediately become Banxso customers, where many investors, possibly thousands, have lost significant amounts of money"
6. [People lured by deepfake ads lose savings](https://mg.co.za/news/south-africa/2024-03-16-people-lured-by-deepfake-ads-lose-savings/) — Mail & Guardian, Mar 16, 2024 (news): "These fraudulent adverts were created and disseminated by third parties with no affiliation to Banxso."
7. [Banxso victim launches liquidation application](https://www.moneyweb.co.za/in-depth/investigations/banxso-victim-launches-liquidation-application/) — Moneyweb, Oct 28, 2024 (news): "This amount seems low, considering around 220 victims contacted Moneyweb and claimed they had lost more than R115 million."
8. [Major South African trading platform fined R2 billion](https://businesstech.co.za/news/business/845956/major-south-african-trading-platform-fined-r2-billion) — BusinessTech, Dec 10, 2025 (news)
9. [Banxso's final liquidation](https://www.moneyweb.co.za/in-depth/investigations/banxsos-final-liquidation/) — Moneyweb, Mar 2, 2026 (news)
10. [Banxso owner launches legal challenge that stalls liquidation](https://www.moneyweb.co.za/in-depth/investigations/banxso-owner-launches-legal-challenge-that-stalls-liquidation/) — Moneyweb, Jun 26, 2026 (news)

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