Hundreds of Walter Sisulu University (WSU) students on Monday turned up to listen to Sibongile Mani at a press conference.
But then Pan Africanist Student Movement of Azania (Pasma) told the media Mani was not ready to speak to the public.
Many students became furious and the gathering turned chaotic as students threatened to assault Mani.
Some chanted “Pay back the money! We want our money!” .
She was escorted by police from fellow students in East London on Monday night.
The student made headlines after allegedly spending over R800 000 from the R14 million that was accidentally deposited into her account.
By the time this came to the attention of the public and her Intellimali card blocked, Mani had already spent about R818 000 of the money.
Students brought traffic to a standstill on Buffalo and Oxford streets.
Pasma leader and activist Vusi Mahlangu told the media that Mani was not ready to speak to the public about the matter.
“She is not coping ever since the matter became public. This is an innocent student whose privacy has been violated by the university which is supposed to be protecting her,” he said.
Mani was eventually saved by police who took her to WSU’s Potsdam campus.