Cape Town's crackdown on luxury cars: Mayor impounds vehicles linked to crypto fraud

A luxury Mercedes – Benz GLE worth more than R2 million, allegedly registered as a white BMW, was among several high-end vehicles impounded during a City of Cape Town operation targeting fraud vehicle registrations in Parklands on Tuesday night.

Mayor Geordin-Hill Lewis claimed many of the owners identified themselves as crypto or forex traders.

Mayor Geordin Hill-Lewis and Mayco Member for Safety and Security, JP Smith took to the streets of Parklands and have impounded fast cars worth millions which did not have valid documentation and registration citing that many “crypto and “forex” traders were owners of these vehicles and had fake paperwork.

“In Cape Town, you will often find “crypto” and “forex” traders driving fancy cars with fake registrations or none at all,” said the Mayor via a Facebook post last night.

“Tonight we impounded cars in Parklands without valid registrations In one case, a brand new silver Merc GLE was registered as a white BMW. Impounded for further criminal investigation.

“South Africa needs stronger policing, that’s why we will build a Cape Town Metro Police Detectives Unit to investigate crimes ourselves.”

His post was followed by Smith, known as the Sheriff of the City, who said such drivers often paid cash for these vehicles and that the law would use the Prevention of Organised Crime Act (POCA) to investigate offences where assets were allegedly obtained during unlawful activities and trade.

“You drive a R2.6 million vehicle, yet you’re supposedly “studying” in South Africa. You paid cash. You can’t explain where the money came from or how you fund your lifestyle,” said Smith.

“Nothing to see here… or is there?

“South Africa already has robust legislation. The problem isn’t always a lack of laws—it’s a lack of capacity to enforce them.

“The Prevention of Organised Crime Act (POCA) provides powerful tools to investigate and prosecute offences such as money laundering, drug trafficking, tax fraud and other organised criminal activity. It also allows for the preservation and forfeiture of assets that are proven to be the proceeds of unlawful activities or used to facilitate serious crime.

“Following the money trail takes skilled investigators. It requires analysing financial records, tracing bank transactions, identifying beneficial ownership and connecting the evidence into a court-ready case.

“Unfortunately, our detectives in the national police service are already overwhelmed by mountains of case dockets involving violent crime, gang violence, murder and firearm offences. Financial investigations are complex and resource-intensive, and too often they don’t receive the attention they deserve.

“The solution has already been proposed.

Empower competent municipalities with the legal authority to conduct investigations into offences within their mandate and compile court-ready dockets. Our municipal enforcement agencies have demonstrated that they have the expertise, technology and commitment to make a meaningful contribution.

“Criminals should not be able to hide behind an overburdened criminal justice system. If we are serious about tackling organised crime, we must not only arrest offenders—we must follow the money, dismantle their criminal enterprises and deprive them of the profits that fuel further crime.”

Hill-Lewis questioned the driver of the Merc whether he was only trading in crypto, to which he said: “I’m trading in crypto.”

DA MP, Nicholas Gotsell who joined the operation shared: “The gentleman who drives this vehicle (Merc) says he is a crypto trader and has a brand new mercedes and the Mayor has just asked him why all the people who drive such unlicensed luxury vehicles are crypto traders.”

Smith said they would be clamping down on such vehicles: “There is clearly a substantial failure of intelligence and meaningful investigation and this is something from our side that we will be pursuing, starting with the impounding with some of these vehicles here tonight and charging persons for the fraudulent licences that they are in possession of

Gotsell shared that the selling price is R2 456 000 and monthly repayments cost you R52 000 with insurance of R 8 000 per month.