Recent developments have thrust Rwanda’s Online Forex Trading industry into the spotlight, particularly following the arrest of Davis Manzi Sezisoni, the Executive Chairman of Billion Traders. Manzi faces serious accusations, including fraud and money laundering, tied to the alleged mismanagement of over US$10 million owed to more than 500 Rwandan investors. While these allegations have stirred public skepticism about the legitimacy of Online Forex Trading, a closer examination reveals a more complex narrative, suggesting that the story behind Billion Traders is not as straightforward as it seems.
The Billion Traders Controversy and the Broader Forex Industry
Online Forex Trading is a global financial market with daily trading volumes exceeding US$6 trillion, recognized worldwide as a legitimate and vital part of the economy. Unlike fraudulent schemes such as Ponzi or pyramid schemes, Online Forex Trading involves the buying and selling of hard currencies based on market demand and supply, governed by strict regulations. The case of Billion Traders, however, highlights the challenges and risks inherent in operating within this complex industry.
Taarifa’s investigation, which began in September 2023, has exposed the extent of the troubles faced by Billion Traders, and investors have voiced frustrations over unmet contractual obligations, leading to widespread concern. Yet, Manzi’s personal situation casts doubt on the narrative that he has defrauded his clients. A visit to his home revealed a man living in financial distress, struggling to meet basic needs such as food, education, and transportation. The question arises: could a man accused of swindling US$10 million be living in such dire conditions? Has it been considered that Davis actually paid back 70% of the US$10m he’s alleged to have squandered?
International Complexities and the Role of IC Markets (Raw Trading Ltd)
Operating an Online Forex Trading company as Billion Traders requires navigating not only local but also international regulations. These companies depend on relationships with international brokers and liquidity providers, such as IC Markets (Raw Trading Ltd), a prominent broker based with an entity in Seychelles. Manzi has pointed out that the troubles faced by Billion Traders were exacerbated when IC Markets (Raw Trading Ltd) froze its account following inquiries from Rwandan authorities/clients. The broker’s response—advising Billion Traders to resolve its issues with local authorities before accessing its funds—underscores the risks that can arise when local regulators intervene in global financial operations.
The situation is further complicated by the fact that IC Markets (Raw Trading Ltd) in Seychelles, operates under the jurisdiction of the Financial Services Authority (FSA). According to Ms. Claudia Jeremie, Supervision Officer of the FSA’s Capital Markets & Collective Investment Schemes Supervision Section, the FSA would liaise directly with relevant regulatory and government bodies concerning this matter, as mandated under Section 17 of the Financial Services Authority Act 2013. This highlights the bureaucratic hurdles involved in resolving disputes that span multiple jurisdictions and involve international trade agreements.
Media Campaigns and Public Perception
Adding to the complexity is a massive media campaign against the Online Forex Trading industry and Billion Traders in particular. Even credible state media outlets have published damaging articles about Manzi, further inflaming public sentiment against him and sensationalizing the whole case as it were. It remains unclear why informed and lawfully knowledgeable authorities would aggressively misinform the public and publicly harass a Rwandan businessman in the manner that Manzi has been crucified. While it is suspected that public pressure may have driven these actions, it is also a telling reflection of how authorities respond when faced with a public outcry.
Despite the negative coverage, some investors have testified that they made decent returns from their investments with Billion Traders before the company’s troubles began. This however, does not exonerate Billion Traders from failing to meet its contractual obligations to investors whom they owe money. The irony here is that while some profited, others have been left in financial limbo. Authorities, therefore, must exhaust all efforts to push and engage Seychelles’ authorities to hold IC Markets (Raw Trading Ltd) accountable for holding funds that belong to Rwandan investors.
The Legal Defense and Manzi’s Plight
The legal representatives of Billion Traders have requested for a Government-to-Government interface thus, MINAFET would engage its counterpart in Seychelles to resolve the issue and release the millions owed to Manzi. Despite these efforts, Manzi has found himself in a precarious legal position, with his arrest and the subsequent freezing of his company’s assets only deepening the crisis. Manzi’s situation calls for a balanced approach, where efforts are directed at finding a solution rather than merely assigning blame and rushing to prematurely punish.
The demands placed on Manzi by his international broker, as illustrated in correspondence from their legal team, emphasize the need for transparency and adherence to fair communication principles. While the broker has raised concerns about the potential dissemination of false and misleading information, Manzi’s legal team argues that the broker’s actions—especially the freezing of Davis’ accounts in February/24—have severely impacted Billion Traders’ ability to meet its contractual obligations. The irony here is that while Manzi is accused of grave misconduct here, the fact that the broker’s actions/inactions directly informs the predicament in which Manzi and Bilion Traders find themselves. You probably know cases of Rusesabagina and Sankara. The Rwanda government showed us that it can pursue suspects beyond its territorial borders. Why can’t RIB or a consortium of institutions go after people who have frozen such amount of money from Rwandans, if indeed what Manzi says is true?
Seeking Solutions for a Fair Resolution
The Online Forex Trading industry in Rwanda, while promising, is fraught with challenges that require careful management and oversight. Manzi’s case highlights the importance of a fair and transparent legal process, where all parties involved are held accountable. Rather than focus solely on accusations, efforts should be expended to allow Manzi the opportunity to recover the funds owed to him. This may involve extending time to him to cincretise earnings from prop firms which is the alternative income generator that he has for Billion Traders; granting him a license to operate under strict supervision would also go a long way in enabling his extrication out the difficult conundrum and thereby enabling his firm to meet its obligations and make recovery.
At the same time, authorities have a responsibility to uphold the law and punish wrongdoers where necessary. However, in Manzi’s case, a solution-oriented approach may prove more effective than punitive measures. By facilitating cooperation between Rwandan and Seychelles authorities, and ensuring that international brokers like IC Markets (Raw Trading Ltd) are held accountable, a resolution that benefits all parties could be achieved. Jailing Manzi, while satisfying public demand for justice, may ultimately be counterproductive if it prevents the recovery of funds that could be returned to investors.
A Call for Balanced Judgment
The Billion Traders saga is a cautionary tale of the complexities and risks associated with Online Forex Trading. While the industry holds significant potential for wealth creation and economic growth, it also requires careful regulation and oversight. The case of Davis Manzi SEZISONI underscores the need for a balanced approach, where authorities work towards finding solutions rather than simply assigning blame. By embracing this approach, Rwanda may continue to develop its financial markets in a way that is both dynamic, resilient and sustainable, ensuring that interests of all stakeholders are protected.
Editor’s Note: Below, is an exclusive interview with Davis Manzi. The interview, conducted by our chief editor, Magnus Mazimpaka, reveals a lot of new details. Take a watch.
