A cryptocurrency business scam in the Masaka District of Central Uganda going by the name of DunamisCoin, has closed shop after collecting an unknown amount from investors and unsuspecting clients.
The company had been recruiting clients through mobile money agents and local employees acting as marketing executives, cashiers, and office assistants.
The company had at least 50 employees.
The company had been promising up to 40 percent interest on cash investments. In addition, applicants were required to pay 20, 000 Ugandan Shillings ($5) for registration which was also never refunded.
The Masaka Redisent District Commissioner has commenced investigations and has requested any person who has been defrauded to report to the security agencies and to be vigilant when it comes to crypto investments.
This latest crypto scam follows a recent announcement and warning by the Bank of Uganda governor who has warned Ugandans on the risks associated with cryptocurrencies.
The Ugandan Finance Minister has also come out and denounced the use of cryptocurrencies in the country saying these are not recognized as legal tender in Uganda which makes it illegal to use them.
While crypto scams like the DunamisCoin are not uncommon in East Africa, they point to a need for regulation to ensure that users are aware and recognize genuine from non-genuine crypto investments in order to make informed decisions.