CMA Kenya Allegedly Investigating NuruCoin CEO for Irregularities in Collecting Investor Funding

Investigators at the Capital Markets Authority of Kenya (CMA Kenya) are apparently investigating the NuruCoin scandal that saw over 11, 000 investors defraud of KES 2.7B in what is likely the biggest cryptocurrency ICO scam in Kenya to date.

According to the local Standard newspaper, the regulator is investigating the NuruCoin founder and CEO, Isaac Muthui, of irregularities in collecting funds from investors under the guise of a virtual currency investment scheme dubbed NuruCoin.

SEE ALSO: NuruCoin, a Kenyan Cryptocurrency, Closes Shop with Billions of Investments Lost

Police are apparently investigating Muthui who is listed as the company director together with his wife and another director named Steven Mbugua.

Two co-founders have already disowned the businessman in the unfolding scam, according to the news daily.

NuruCoin closed shop in late 2019 following numerous complaints from investors. The companies have been closed across various towns including their main office in a Nairobi suburb.

Following a rise in recent crypto scams in East Africa, the blockchain associations of Kenya, Rwanda, and Uganda have put out a joint statement on cryptocurrency and ponzi schemes to help investors make informed decisions cryptocurrency investments.

 

UPDATE:

The Capital Markets Authority of Kenya (CMA Kenya) has reached out and said that it is not investigating NuruCoin.

CMA maintains its position on Initial Coin Offerings (ICOs) and referred to the general information put out that it ‘has not as of this date approved any Initial Coin offering. The ongoing offerings are unregulated and speculative investments, with considerable risk to the investor.’

See the CMA cautionary statement on Initial Coin Offerings dated 31st, January, 2018, here.

 

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