DA federal finance chairperson Mark Burke is facing growing scrutiny after the South African Reserve Bank blocked funds belonging to fintech company Kastelo.
Burke co-founded Kastelo and previously served as its CEO. The company later said he stepped down as chairman in February 2026 and is no longer involved in an executive or non-executive capacity.
The Reserve Bank is investigating alleged exchange-control breaches involving about R4 billion in offshore transfers.
Kastelo denies breaching exchange-control rules.
Court rejects attempt to overturn block
The dispute reached the Johannesburg High Court after Kastelo sought to review and set aside a November 2025 order blocking withdrawals from an Access Bank account.
Acting Judge S Johnson dismissed the application on 28 July 2026 and ordered Kastelo to pay the Reserve Bank’s costs on an attorney-and-client scale.
The judgment records that the Reserve Bank had a reasonable suspicion of several possible exchange-control contraventions.
Kastelo stressed that the court did not make a final finding that its business activities were unlawful and said the broader Reserve Bank investigation remains underway.
Crypto arbitrage model under scrutiny
At the centre of the dispute is Kastelo’s crypto arbitrage service.
The Reserve Bank alleges the company used clients’ Single Discretionary and Foreign Investment Allowances to externalise money for Kastelo’s own benefit. It also alleged that some clients were incentivised to make their allowances available.
Kastelo rejects that interpretation. It says clients knowingly invested their own funds and were informed about the offshore accounts used during the arbitrage process.
Burke faces political pressure
The controversy has now moved into Parliament.
The ANC has called for Parliament’s Joint Ethics Committee to investigate Burke and wants the DA to remove him from the Standing Committee on Finance, arguing that his position creates a conflict.
Burke has not been charged with a criminal offence and is not identified as the subject of the Reserve Bank investigation.
The DA said on Monday that it would issue a statement on the matter, while the Reserve Bank investigation into Kastelo continues.