Forex fraud trial: Davis Manzi seeks release to repay billions to investors

The Gasabo Intermediate Court on Tuesday, June 10, resumed the trial of Davis Manzi, founder of the forex trading platform Billion Traders FX, and his wife, Sophie Akaliza, who served as the company’s CEO and co-founder, who are faving fraud charges. The couple stands accused of defrauding investors through an unregulated online forex business, with victims alleging that they lost billions of francs. During Tuesday's hearing, Manzi’s legal team requested his temporary release from detention, arguing that doing so would enable him to repay outstanding debts owed to more than 100 clients. They said while in detention Manzi cannot access some $2.5 million (nearly Rwf3 billion) allegedly frozen in offshore accounts in the Seychelles, and that only his release could allow him to access the funds. ALSO READ: Why trial of Billion Traders FX founder, wife was adjourned to June “He is not denying the debts,” the defense lawyers argued. “Manzi believes the only way justice can truly be served is by repaying the victims. But he cannot do that while incarcerated.” His lawyers added that Manzi had already started efforts to compensate some of the victims, citing Rwf30 million raised from family members, which was distributed among five complainants. They also insisted that Manzi had not been truly “free” in the year leading up to his arrest in July 2024, but rather had been under house arrest for eight months, further hindering his ability to resolve the matter. They claimed his accounts were blocked in November 2022 and that he had since faced significant legal and operational challenges. However, the prosecution and representatives of the victims pushed back on the request by Manzi's lawyers. They called the defense’s request a stalling tactic and requested that the court find that there was no credible evidence that the offshore funds even existed. “There is no documentation proving that the accounts in the Seychelles hold any money,” said the prosecutor. “We have no guarantees, no properties registered under Manzi or his wife, no nothing.” ALSO READ: Trial of fraud suspect Davis Manzi and wife postponed until April The prosecutor also questioned why Manzi had not refunded the victims earlier on if Manzi was genuinely committed to do it. “He was given over a year before his arrest to clear the arrears. He did nothing,” the prosecutor said. Victims’ lawyers echoed this sentiment, stating that the defense had failed to propose any tangible guarantees or collateral to back up the repayment claims and using the claim of blocked accounts as a cover to delay justice. It was mentioned that some victim testimonies detailed the human cost of the alleged fraud, families broken, businesses lost, school dropouts, and properties auctioned off. “This case has deeply affected people’s lives, said one representative. Some have even divorced because of the financial stress. What they need now is not promises, but justice.” Manzi’s legal team argued that he had made consistent efforts to communicate with authorities, including alerting the Rwanda Investigation Bureau (RIB) multiple times about money in his account, and some clients were paid when he was still under the alleged house arrest. In previous hearings, according to the defence team, when Manzi established Billion Traders FX, there were no clear laws governing online forex trading in Rwanda. He claims to have sought guidance from both the National Bank of Rwanda and the Capital Market Authority (CMA), but only received verbal advice to proceed with his operations while regulators reviewed his model. Manzi maintains that his general business license from the Rwanda Development Board (RDB) allowed him to operate a forex business, including online trading. He blames his financial woes on a 2022 report from the CMA to RIB, which prompted authorities to freeze his accounts. The prosecutors refuted these claims, stating that the RDB license only covered traditional currency exchange and did not authorize online investment activities. They further allege that Manzi lured investors by promising unrealistic returns, claiming, for example, that a $50,000 investment would earn 10% profit in six months, with the full capital refunded. According to court documents, Billion Traders FX collected over $10 million from clients. Manzi claims hto have refunded more than $7 million of that, and that the remaining amount could be settled if his accounts are unfrozen. Prosecutors have charged Manzi with fraud, illegal forex trading, and money laundering. His wife, Akaliza, is also facing charges as an accomplice but remains out of custody. The court is expected to deliver a ruling on June 19regarding Manzi’s request for provisional release.

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Forex fraud trial: Davis Manzi seeks release to repay billions to investors