Ugandan crypto scam comes into light after receiving 4,000 complaints
|- The directors of the crypto firm (linked with the scam) are charged with 65 counts of obtaining money under false pretense.
- The accused have reportedly obtained over $37,000 by promising unrealistic returns to several investors.
The full impact of a Uganda-based scam is coming into light after appearing in court this week. Uganda police have registered 4000 complaints against Dunamiscoins Resources Ltd, a crypto startup, following its collapse last year. Samson Lwanga and Mary Nabunya, the directors or the firm, appeared in court a few days back. As per The Observer reports, the directors are being charged with 65 counts of obtaining money under false pretense and conspiracy to commit a felony.
Prosecutors allege that these two operated the crypto scam between February 14, 2018, and December 3, 2019. The accused have obtained over $37,000 (140,050,000 Ugandan shillings) by promising unrealistic returns to several investors, as per the report. Earlier reports had stated that the Dunamiscoins scam had managed to gain over 10 billion Ugandan shillings (ca. $2.7 million) from the investors.
Dunamiscoins had set up offices and hired many local citizens in Masaka Town, who had also invested in the company (following the company’s request). In December, however, offices were shut down unexpectedly, leaving many people unemployed. Reportedly, the accused have said that they will refund the victims, but the country’s Financial Intelligence Authority has frozen their accounts. The directors have pleaded not guilty to the claims and will be questioned later. Till then, they will remain in custody.
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