According to a local report, Lloyd Chiyangwa, a crypto dealer from Zimbabwe, has been accused of diverting assets valued at over $457,000 from the cryptocurrency wallets of one of his clients. The alleged incident involves the unauthorized transfer of funds by Chiyangwa from the client’s crypto wallets.
This is the first reported case of this nature involving crypto to be heard by the state.
As stated by prosecutors, Chiyangwa is accused of appropriating the funds by utilizing the seed phrases and passwords he acquired while assisting the client in setting up their cryptocurrency wallets.
According to the report in the Herald, Chiyangwa’s client acquired the digital assets from an undisclosed UK-based company in July 2020. Notably, during the time of the purchase, the client resided in India.
Upon their return to Zimbabwe in 2021, the client sought assistance from the crypto dealer to establish five wallets:
- Trust Wallet
- Metamask
- Exodus
- Cosmostation, and
- Wemix
These wallets were set up with the help of the crypto dealer to facilitate the management and storage of the client’s digital assets.
While Chiyangwa is accused of committing the crime between October 2021 and March 2023, it wasn’t until May 2023 that the client discovered the theft when they tried to engage in trading using the Trust Wallet.
According to the report, Chiyangwa allegedly made seven withdrawals from the client’s wallet. These transactions varied in value with the highest withdrawal amounting to $261,500, and the lowest recorded at $5,155. As Chiyangwa now confronts charges of theft and money laundering, it is alleged that he utilized the embezzled funds to purchase two iPhones, a laptop, and a Mercedes Benz.
During the bail application hearing, prosecutors argued against granting bail to Chiyangwa, emphasizing that he poses a flight risk. They presented evidence that Chiyangwa holds two passports and owns two South African bank accounts which received a portion of the stolen funds.
According to the report, Harare regional magistrate, Marehwanazvo Gofa, decided to keep Chiyangwa in custody while the court thoroughly reviews his bail application.
