Thesuicide note cited personal reasons. But Ashraf Nusubuga, a radiology studentat Kampalas Makerere University Ugandas leading higher educationinstitution didnt hang himself over a love affair gone wrong or because ofacademic pressure. The 22-year-old killed himself after losing money he hadinvested in a bogus cryptocurrency firm.
He had put all of his money and some he had borrowed into what turned out to be a Ponzi scheme, lured by the promise of high returns, according to Luke Oweyesigire, deputy spokesperson for Kampala Metropolitan Police. But Nusubuga isnt the only one to have fallen victim.
A series of large cryptocurrency scams is rocking Uganda, turning the East African nation into an unlikely hub for fraudulent firms claiming to offer digital currencies, while preying on weak governance and low financial literacy. Other major cryptocurrency scams in 2019 involved developed economies Japans BITPoint exchange lost $28 million, and con men in the U.K. and the Netherlands stole $27 million from Bitcoin users. Globally, cybercriminals stole $4.3 billion from users and exchanges last year. But Uganda is the worst hit by far.
At least five cryptocurrency firms have closed shop and walked away with a total of more than $26 million of their clients money in the past six months. From students and churchgoers to army officers and government officials, the victims span Ugandan society. Robert Bakalikwira, a criminal investigations officer probing these cases, estimates that in all, 200,000 Ugandans have lost about $1 billion, or almost 4 percent of the countrys GDP of $28 billion, over the past two years.
Ugandans are better off investing their money in cows than plunging into the unknown world of cryptocurrencies.
Patrick Mweheire, chairman, Uganda Bankers Association
These scams are different from those in the West, where hackers have stolen from exchanges or robbed from people. In Uganda, fake firms claiming to offer cryptocurrencies are luring people to buy in, before walking away with their money. The countrys growing crisis holds lessons for other poor nations with weak regulations unable to keep up with the sometimes misleading promise of technology.
We have receivedvery many cases of cryptocurrencyscams,says Fred Enanga, Ugandas national police spokesperson. We advise Ugandans toavoid being fleeced off their money in such deals.
But the role of President Yoweri Musevenis government is coming under scrutiny. It has set up a 10-member commission of inquiry, and is issuing public statements to alert Ugandans that the government and central bank dont recognize any cryptocurrency. Yet even though the country has no regulations for the sector, the government hasnt made it illegal to operate a cryptocurrency firm in Uganda. In parliament earlier this month, an MP pointed out that Kwame Rugunda, the son of Prime Minister Ruhakana Rugunda, is CEO of CryptoSavannah, a cryptocurrency advisory firm.
Museveni himself appeared to be an early proponent of cryptocurrencies. At an event in Kampala in January 2017, where Bank of Uganda Governor Emmanuel Mutebile said he wasnt confident about the credibility of cryptocurrency, the president rebuffed him. Museveni said Mutebile wasbeing dogmatic, and emphasized the need to embrace technology.
Many ordinary people in the country which has the lowest literacy rate in the region took it as a government endorsement of digital currencies. A flood of firms some legitimate and several fraudulent entered the country.
Museveni is partly responsible for our suffering, says 50-year-old Ken Wamala from the southern Uganda town of Masaka who says scams have cost him around $41,000.
The fraud firms include Dumanis Coins, whose management disappeared on Dec. 3, 2019, after collecting $2.7 million in Ugandan shillings. More than 10,000 people had invested in the company. Police have arrested one of the firms directors but are still searching for four others, says Kampala police spokesman Patrick Onyango. John Kalevu, whose shop is next to Dumanis Coins former office, says he came to work one day to find the cryptocurrency firms doors open, but the office empty.
Global Cryptocurrencies closed overnight in November. Andrew Kagwa, its chief executive, was arrested after two weeks on the run. More than 10,000 people had invested $8.2 million in the firm. Lion Cryptocurrency closed down in October 2019, taking with it $5.4 million in investments made by 17,000 people, says Henry Musagala, the investigating officer. One Coin, another of the fraud firms, duped 12,000 people out of $6.8 million. The D9 cryptocurrency company shut shop with $3.2 million in investments from 9,000 people.
Other cryptocurrency companies that have closed since early 2018 leaving thousands of people confused and stranded include Team, Dutch International, Finetegry and Fital-Science.
Employees of these firms havent escaped unscathed either. Sheila Nassali, a nurse by training, recalls how a Global Cryptocurrency director convinced her to join the company as a secretary and a customer. She was shocked when the director disappeared, leaving me to face angry customers who wanted to get their money.
Patrick Mweheire, chairman of the Uganda Bankers Association, says, Ugandans are better off investing their money in cows than plunging into the unknown world of cryptocurrencies.
But experts and former employees of these firms say ignorance isnt the only problem. Muzamiru Kigundu, who used to work with Lion Cryptocurrency before it shut down, alleges that many government officials are among the owners of cryptocurrency companies mushrooming in Uganda. That lends the industry legitimacy in the eyes of ordinary people. The directors of these firms rent fancy offices and drive expensive cars to create the impression that theyre wealth creators, he says.
Ugandas corruption it ranks 160 in Transparency Internationals index is also to blame. Some of the fake firms were registered as companies even though they didnt meet statutory requirements. The major cause of the cryptocurrency scams is corruption, says Joseph Bogere, professor of economics at Makerere University.
Ultimately, though, its the responsibility of the countrys leaders and security organizations to protect citizens against such crooks, says Solomon Male, a pastor. That isnt happening yet. An already poor nation is bleeding further, while gaining an unwanted reputation.
Continued here:
The Billion-Dollar Cryptocurrency Scams You've Never Heard About - OZY
- MIT-educated brothers accused of stealing $25 million in cryptocurrency in 12 seconds in Ethereum blockchain scheme - CBS News - May 15th, 2024 [May 15th, 2024]
- DOJ Charges 2 Brothers With Scheme to Steal Cryptocurrency - PYMNTS.com - May 15th, 2024 [May 15th, 2024]
- US charges two brothers with novel $25 million cryptocurrency heist - AOL - May 15th, 2024 [May 15th, 2024]
- MIT-educated brothers allegedly stole $25M in crypto in just 12 seconds - New York Post - May 15th, 2024 [May 15th, 2024]
- DOJ charges 2 brothers tied to $25M attack on MEV bots last year - Blockworks - May 15th, 2024 [May 15th, 2024]
- Brothers indicted for 'first-of-its-kind' cryptocurrency heist - Courthouse News Service - May 15th, 2024 [May 15th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 - The Motley Fool - May 15th, 2024 [May 15th, 2024]
- Sonne Finance developers offer bounty to hacker behind $20 million crypto theft - The Record from Recorded Future News - May 15th, 2024 [May 15th, 2024]
- Brothers indicted over $25 million Ethereum cryptocurrency theft: DOJ - FOX 10 News Phoenix - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Price on May 15: Bitcoin dips below $62k ahead of US inflation report today - The Economic Times - May 15th, 2024 [May 15th, 2024]
- $100 Trillion Market Cap For Cryptocurrency Will Be a Reality: Analyst - Watcher Guru - May 15th, 2024 [May 15th, 2024]
- This Week in Web3: Crypto Payment Rails and Regulatory Clarity - PYMNTS.com - May 15th, 2024 [May 15th, 2024]
- Unveiling Fourprime Token Where Innovation Meets Cryptocurrency Revolution - AccessWire - May 15th, 2024 [May 15th, 2024]
- Binance: A Comprehensive Overview of The World's Leading Cryptocurrency Exchange - Blockchain.News - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Likely to Resume Rally: 4 Stocks Set to Gain - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency: Mass Institutional Adoption Underway, with Bitcoin, BlockDAG Network, and Ethereum Value Surge - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 - sharewise - May 15th, 2024 [May 15th, 2024]
- Two Brothers Arrested for Attacking Ethereum Blockchain And Stealing $25M In Cryptocurrency - Eurasia Review - May 15th, 2024 [May 15th, 2024]
- 3 Potentially Brutal Cryptocurrency Risks That Most Investors Simply Aren't Ready For - The Motley Fool - May 15th, 2024 [May 15th, 2024]
- Crypto customer scammed in alleged HK$1 million hell money scheme in Hong Kong - South China Morning Post - May 15th, 2024 [May 15th, 2024]
- Brothers accused of stealing $25 million in cryptocurrency in 12 seconds - MSN - May 15th, 2024 [May 15th, 2024]
- Solana (SOL) Price Prediction 2024,2025 And 2030 Forbes Advisor INDIA - Forbes - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Warning: Avoid These 3 Failing Names - InvestorPlace - May 15th, 2024 [May 15th, 2024]
- Top 3 Cryptocurrency to Invest Now According to Reddit: Bitcoin, Ethereum, Furrever Token - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- Two Brothers Educated In Prestigious University Stole Cryptocurrency Worth $25 Million In 12 Seconds, Feds Allege - Daily Caller - May 15th, 2024 [May 15th, 2024]
- 6 Altcoins To Consider Buying For The Next Bull Run In 2024 - Forbes - May 15th, 2024 [May 15th, 2024]
- US charges two brothers with novel $25 million cryptocurrency heist - ThePrint - May 15th, 2024 [May 15th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Market News: Bitcoin Halving Steadies Price, Network Transaction Fees Spike - Investopedia - April 25th, 2024 [April 25th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- 10 Best Cryptocurrencies To Buy In April 2024 - Forbes - April 25th, 2024 [April 25th, 2024]
- Movement Labs raises $38 million to build layer 2 blockchain on Ethereum with Facebook tech - Fortune - April 25th, 2024 [April 25th, 2024]
- Cardano Founder Charles Hoskinson Reiterates Core Purpose of Cryptocurrency Here's What You Need to Know - Cryptonews - April 25th, 2024 [April 25th, 2024]
- From Cryptocurrency to Cannabis: 7 Penny Stocks on the Rise - InvestorPlace - April 25th, 2024 [April 25th, 2024]
- South Carolina: Cryptocurrency scams on the rise in Upstate - WYFF4 Greenville - April 25th, 2024 [April 25th, 2024]
- Binance BNB Memecoin Traders Join 100X New Cryptocurrency On Uniswap - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- The Future of Real Estate: Investing in Tokenized Properties with Cryptocurrency - ForexLive - April 25th, 2024 [April 25th, 2024]
- The Current Position with Cryptocurrency Regulation in the United States - Latest Cryptocurrency Prices & Articles - April 25th, 2024 [April 25th, 2024]
- 3 Must-Know Facts About Ethereum, Before You Buy the Cryptocurrency - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: 3 Meme Coins To Watch In May for Exponential Gains - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- EOS Falls 14% In Bearish Trade By Investing.com - Investing.com - April 25th, 2024 [April 25th, 2024]
- The UItimate Cryptocurrency to Buy With $1,000 Today - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Romance scams involving AI images, cryptocurrency on the rise in Chicago - CBS Chicago - April 25th, 2024 [April 25th, 2024]
- Bitcoin Halving Event Of 2024: The Aftermath Forbes Advisor Australia - Forbes - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Ethereum Classic Down More Than 4% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: Top 3 Coins To Buy Now For 10X Gains In 2024 - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- What's going to be different with the halving of Bitcoin this time? - Euronews - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Kaspa Falls More Than 3% In 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- BRICS To Replace US Dollar With Cryptocurrency for Trade - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- Bitcoin Halving Sparks Unprecedented Transformation in Cryptocurrency Market - West Island Blog - April 25th, 2024 [April 25th, 2024]
- Influential Analyst on YouTube Shares High-Potential Cryptocurrency That Could Beat Shiba Inu (SHIB) and Dogecoin (DOGE) Gains in This Bull Run -... - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Uniswap Up More Than 3% In 24 hours By Benzinga - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- Bitcoin is halving again what does that mean for the cryptocurrency and the market? - The Conversation - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Ethereum Classic Down More Than 4% Within 24 hours By Benzinga - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- RackNerd Expands Cryptocurrency Payment Options with Coinify Integration, Accepting Over 30 Cryptocurrencies - PR Web - April 25th, 2024 [April 25th, 2024]
- What Meltdown? Crypto Comes Roaring Back in the Philippines. - The New York Times - March 18th, 2024 [March 18th, 2024]
- Chinas cryptocurrency investors made gains of US$1 billion in 2023 - South China Morning Post - March 18th, 2024 [March 18th, 2024]
- 1 Super Cryptocurrency Could Soar to $200,000 by 2025, According to a Wall Street Analyst - The Motley Fool - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency Miners Need to Report their Energy Use - Earthjustice - March 18th, 2024 [March 18th, 2024]
- Understanding the Fundamental Differences Between Cryptocurrency and Fiat Currency - FinSMEs - March 18th, 2024 [March 18th, 2024]
- SOL Flips BNB, Becoming 4th Largest Cryptocurrency as Ethereum Becomes Next Target - CCN.com - March 18th, 2024 [March 18th, 2024]
- Prosecutors seek from 40 to 50 years in prison for Sam Bankman-Fried for cryptocurrency fraud - The Associated Press - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency: 3 Meme Coins That Could 15x This Bull Season - Watcher Guru - March 18th, 2024 [March 18th, 2024]
- Can the Bitcoin surge push India to overcome its cryptocurrency hurdles? - The National - March 18th, 2024 [March 18th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 Today - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- Cryptocurrency laundryman gets hung out to dry - The Register - March 18th, 2024 [March 18th, 2024]
- Bitcoin price predictions: How much more could it rise in 2024? - Euronews - March 18th, 2024 [March 18th, 2024]
- Shiba Inu Is Skyrocketing: Is It a Top Cryptocurrency to Buy Right Now? - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- 1 Top Cryptocurrency to Buy Before It Soars 1,328%, According to Cathie Wood of Ark Invest - The Motley Fool - March 18th, 2024 [March 18th, 2024]
- The other Bitcoin rally: How scams are cashing in on the cryptocurrency fever - EL PAS USA - March 18th, 2024 [March 18th, 2024]
- Kalshi Prediction Market To Introduce Cryptocurrency Betting (Payouts In USD) - Blockchain Magazine - March 18th, 2024 [March 18th, 2024]
- Bitcoin Hits Record $72,000, Emboldening Crypto Industry - The New York Times - March 18th, 2024 [March 18th, 2024]
- Solana (SOL) Flips BNB to Become 4th Largest Cryptocurrency - Watcher Guru - March 18th, 2024 [March 18th, 2024]
- Predicting which Cryptocurrency will Boom in 2024 - ForexLive - March 18th, 2024 [March 18th, 2024]
- Nigeria's Cryptocurrency Crackdown Will Have Consequences, Experts Say - Voice of America - VOA News - March 18th, 2024 [March 18th, 2024]
- Crypto ETN providers head for UK but urge rethink on retail ban - Financial Times - March 18th, 2024 [March 18th, 2024]
- Trump Signals Positive Stance on Cryptocurrency If Elected to the White House - Yahoo Finance - March 18th, 2024 [March 18th, 2024]
- Bitcoin Bulls vs. Bubble Bears: A Cryptocurrency Clash - Crypto Times - March 18th, 2024 [March 18th, 2024]