Uganda’s Cryptocurrency Scam Exposed: Police Nab Director, Hunt for Others

A Massive Scam Revealed

Police have arrested one director of Dunamiscoin Resources Limited, a cryptocurrency company, and are hunting four others accused of fleecing thousands of Ugandans out of approximately Shs10 billion in a massive cryptocurrency scam.

The Scheme Exposed

The alleged con artists promised investors a 30% profit every 21 working days, but instead, they disappeared with the money. The scheme was uncovered after victims began reporting losses, with one Indian national claiming he lost Shs250 million. Another victim said she had lured many people into investing in the scheme, and her aunt collapsed upon learning that they had been duped.

How it Worked

The company, which has branches in Kampala’s Ndeeba and other districts, promised investors a 30% profit every 21 working days and even offered a special offer of 40% for those who invested more than Shs2 million. However, the scheme was exposed after victims discovered that their money had disappeared and the company’s premises had been closed.

The Impact

The scam has left many Ugandans reeling, with some losing large sums of money. One victim, Mutebi, said he was introduced to the business by his wife, who had been lured in by a manager at the Ndeeba branch. He initially deposited Shs5 million and received a 30% profit after 21 days, but later realized that he had been duped when his wife called him to say that the company’s premises had been closed.

The Bigger Picture

This is not an isolated incident; there have been numerous reports of cryptocurrency fraud in Uganda, with many victims unable to recover their losses. The Ministry of Finance has warned the public about the risks associated with cryptocurrencies, and the Bank of Uganda has also issued statements cautioning against investment scams.

The Need for Regulation

The scam highlights the need for greater regulation and oversight of the cryptocurrency industry in Uganda, with many experts calling for stricter laws to protect investors from fraudulent schemes. In a statement, the Ministry of Finance said that the government does not recognize any cryptocurrency as legal tender in Uganda and warned that holders of these currencies are fully exposed to the risk of loss or diminishing value.

The Bank’s Warning

The Bank of Uganda has also cautioned that cryptocurrencies are attractive for use in criminal transactions such as money laundering and fraudulent ventures. It is essential for investors to be aware of these risks and to exercise extreme caution when considering investing in cryptocurrencies.

Conclusion

The arrest of Samson Lwanga, one of the directors of Dunamiscoin Resources Limited, marks a significant step towards bringing those responsible for this massive scam to justice. However, it also serves as a stark reminder of the need for greater regulation and oversight of the cryptocurrency industry in Uganda.