Crypto Pyramid Scheme in Uganda Steals Employees’ Money and Closes

An alleged cryptocurrency pyramid scheme in Uganda has fled after defrauding dozens of victims that invested in and worked for the scheme.

Dunamiscoins Resources Limited opened in Masaka last month and started inviting individuals to invest and become part of its “digital currency network,” independent Ugandan newspaper Daily Monitor reports Dec. 5. The firm’s offices closed down covertly just a month after opening, with employees reportedly coming to the office to find it empty.

Dunamiscoins required employees to pay to start work

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.

Additionally, Dunamiscoins allegedly asked each applicant to pay 20,000 Uganda shillings ($5) to register with the company. According to a former Dunamiscoins salesperson, the firm promised high returns on investments but fleeced its employees of money paid for registration as well.

Daily Monitor attempted to get in touch with Dunamiscoins but none of the phone numbers obtained by the publication was available, the report notes. Cointelegraph reached out to an email address mentioned on Dunamiscoins’ website only to receive a notice that the listed address couldn't 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. 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.