Warren Whitley, CEO and co-founder of Africa Bitcoin Corporation, has resigned following the Financial Sector Conduct Authority's (FSCA) decision to ban his activities and impose an administrative fine of 5 million rand.
The company announced on Tuesday in a SENS filing that Whitley stepped down as CEO and employee of the company effective September 21. The board of directors accepted his resignation, and Stafford Massey will continue to serve as interim CEO while the company searches for a permanent successor.
In an open letter, Whitley stated that his decision to leave was voluntary and aimed at prioritizing the interests of the company, its employees, and shareholders over his personal interests, while he contests the FSCA's decision.
The FSCA's actions relate to orders and transactions involving Altvest shares in September 2022. Whitley stated that he will apply to the Financial Services Tribunal to review the regulator's decision and suspend the sanctions during the case review.
According to Whitley, the transactions occurred during the testing period of the broker's trading platform, which historically operated incorrectly. He specified that three transactions totaling 301 rand, including 50 shares, were made during the testing phase.
The FSCA had previously determined that Whitley, along with two other executives, participated in actions concerning Altvest shares that led to an artificial inflation of share prices and/or the creation of false or misleading supply, demand, or trading activity. The regulator fined Whitley 5 million rand and banned him from operating for 20 years.
Whitley disputes these findings, asserting that his resignation was made 'without admitting guilt' and without waiving his rights before the Financial Services Tribunal. He noted that his role was effectively in limbo since the company was notified of the FSCA's decision in late August, and that the company could not wait for the tribunal process to conclude.
He emphasized that active leadership would better serve the company, its personnel, shareholders, fund investors, SME clients, and their employees than his continued tenure. Whitley, who founded the company with his wife, stated that he will continue to file applications with the tribunal and support the board of directors in appointing a new CEO.
Africa Bitcoin Corporation, formerly known as Altvest Capital, reported that Whitley's application for review and related proceedings in the Financial Services Tribunal are a personal matter for him and will continue independently of the company.
