An alleged cryptocurrency pyramid scheme in Uganda has fled after defrauding dozens of victims that invested in and worked for the scheme.
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On December 5, it has been reported by Daily Monitor, the Ugandan newspaper, that Dunamiscoins Resources Limited opened in Masaka last month and started inviting individuals to invest and become part of its “digital currency network.”
However, the firm’s offices closed down covertly just a month after opening, with employees reportedly coming to the office to find it empty.
It has been analyzed that a businessman who worked next to Dunamiscoins’ closed offices reportedly said that Dunamiscoins was convincing people to join its firm by promising 40% returns on cash investments.
According to the witness, the firm was apparently working with money transfer companies in the city to recruit new people to the scheme.
Moreover, Dunamiscoins allegedly asked each applicant to pay 20,000 Uganda shillings ($5) to register with the company. So, according to a former Dunamiscoins salesperson, the firm promised high returns on investments but fleeced its employees of money paid for registration as well.
The report notes that Daily Monitor attempted to get in touch with Dunamiscoins but none of the phone numbers obtained by the publication was available.
It has also been analyzed that an email address mentioned on Dunamiscoins’ website has only to receive a notice that the listed address could not be found.
The report follows a recent announcement by the Deputy Governor of the Bank of Uganda that online cryptocurrency businesses are not regulated in the country to date.
Thus, in June 2019, the official warned the public on the limited protections offered them when they invest in unregulated cryptocurrencies, also outlining a number of risks associated with crypto trading and adoption.