A cryptocurrency exchange in Uganda is taking a lot of flak for potentially stealing users’ money.
Uganda Is Home to a Crypto Scam
The exchange appears to have set up a phony job search in which several people within the country who may have been looking for jobs either in the cryptocurrency or digital tech fields were asked to apply. As part of the application process, they were required to donate more than 20,000 Uganda Shillings (worth approximately $5 in USD).
The trouble is that the exchange was only around for about a month. After receiving a substantial sum from dozens of applicants, the exchange seems to have shut its doors permanently. Thus, everyone who may have applied for a job with the venture is out some cold, hard cash.
The scheme smells like a scam in every way, shape and form. The exchange was known as Dunamis Coins Resources Limited and opened in Masaka Town in Uganda last November.
Africa, which has become something of a controversial region for crypto activity, has either attracted extraordinary blockchain innovation or has led crypto wannabes deep into dark territory. One prime example of Africa’s more “responsible” or positive crypto side is the fact that it was able to attract a social media mogul and crypto enthusiast like Jack Dorsey.
As the CEO of both Square and Twitter, the man who said in 2018 that the world will operate under bitcoin as its only form of currency by the year 2028 explained to the press that he’s recently completed a tour of several countries within the continent and that he’s going to be living there in 2020 for about three to six months to potentially bring more crypto and blockchain business to its many nations.
At the same time, regions like South Africa have often been held hostage by way of cryptocurrency, such as in a recent case involving the city of Johannesburg. The area’s many computer networks recently came under the control of hackers who were requesting a hefty bitcoin ransom in exchange for access to the city websites.
One of the big problems involving Dunamis Coins, according to a neighboring businessman, is that the company was promising 40 percent returns on all investments. This should have been a clear red flag to all who were interested in getting involved. Any company that promises returns is fraudulent because all experienced investors know returns cannot be guaranteed, especially in the crypto world.
Will Help Arrive?
Digital assets are extremely volatile. They can go up as easily as they can go down, and any venture that claims otherwise is likely up to some very shady business indeed.
Many people who were victimized by the potential scam are turning to law enforcement for assistance, though it’s unclear if help will come considering Uganda does not recognize crypto as legal money.