- The startup, Dunamiscoins Resources Limited. assured that the investors would earn substantial returns in a short period.
- Dunamiscoins began operating in March and was paying out to early investors.
One of the directors of a cryptocurrency startup in Uganda has recently been arrested over a $2.7 million Ponzi scheme. Samson Lwanga, director of Dunamiscoins Resources Limited that closed suddenly, was arrested last week. According to a local news report, he will appear in court later this week.
The scam managed to steal 10 billion Ugandan shillings ($2.7 million) out of victims. The police are still searching for the other directors of the startup. Similar to other crypto scams, Dunamiscoins assured that the investors and employees would earn substantial returns within a short period. However, the company was shut down after a month. The company began operating in March and was paying out to early investors. A police spokesperson said in a statement:
We have already opened a general inquiry file and investigations are going on. We recorded statements from the complainants and arrested one of the directors called Samson Lwanga, who is currently detained at Old Kampala Police Station.
As per the police spokesperson, Lwanga has agreed to refund the money, but he is unable to do so as their accounts have been frozen. Currently, the police are investigating the matter.
During the time of Hard Fork’s first report on the scam, it was unknown how many people have been the victims of the fraud. However, in Daily Monitor’s latest update, the scam seems bigger than first reported. Apparently, around 1000 investors had registered with the startup. Despite this, some victims claimed that the number of people involved is approximately 10,000.
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