A fourth year student at Makerere University in Kampala, Uganda, has committed suicide after apparently losing 18,000,000 UGX (Appx. $5,000 USD) in what the police say was a cryptocurrency scam.
According to The Ugandanz, the 22-year old was found dead in his room by a roommate who said Nsubuga, the fallen student, ran many businesses alongside his studies.
Speaking on the incident, the Kampala Metropolitan Deputy Police Spokesperson, Luke Owoyesigyire,
“We establish that he was convinced to invest a huge amount of money in a digital asset known as cryptocurrency hoping to make quick profits.”
Nsubuga had taken loans to invest in the unknown cryptocurrency and commited suicide when he lost everything.
The incident coincides with the recent announcement by the Ugandan government which denounced cryptocurrencies as legal tender and said no organization or institution in the country has been authorized by the government to issue or facilitate trade in crypto.
The blockchain association of Uganda has put out a press release on the same. According to the association press statement, a key misconception of cryptocurrencies is the claim that they are attractive for fraudulent ventures such as Ponzi and pyramid schemes.
The statement notes:
“Ponzi schemes are a result of criminal minds that prey on the ill-informed for fraudulent gain. The tools may change but the intent is the same. When ponzi schemes use cash, we do not fault the cash, we fault the schemes. The same way we deal with ponzi schemes who use cash, is the same way we should deal with ponzi schemes who use crypto, we equip the public with information.”
The full press release is available here.
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