Wednesday, December 11, 2021

Director of Uganda Exchange Dunamis Coins Questioned Over Alleged Scam

Last week, Live Bitcoin News reported on a story involving a cryptocurrency exchange known as Dunamis Coins Resources Limited, based in Uganda. The exchange was under fire from users who say they were duped into providing money to the business as part of a shady job application process.

Case of Uganda Exchange Grows Larger

The exchange was requiring all those interested in seeking consideration for its crypto and blockchain-based jobs to donate $5. The trouble was that about a month later, the exchange went dark, and all who applied lost money. It’s believed that as much as $2.7 million may have been stolen by the exchange’s executives.

Now, an arrest has been made in relation to the scam. Samson Lwanga - a director of the company - is in police custody and is being questioned regarding the exchange that seemingly made off with the money of both its investors and potential job applicants.

Lwanga is due in court later in the week for a hearing. At press time, it appears four other directors of the now defunct enterprise are on the lamb, though law enforcement officials are actively seeking them out for questioning.

The news comes as sort of a relief in the sense that Uganda does not recognize digital assets as legal money. Thus, it was unclear during the initial report if police officials would provide necessary assistance to those who had been scammed. It’s refreshing to see that victims are now getting the aid they deserve, and while crypto may not be considered legal tender, it has clearly made enough of an impact in Uganda for those in charge to consider it property that must be recovered if stolen.

A spokesperson for the law enforcement agents involved in the case explained:

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.

A Man Has Been Arrested

One of the biggest problems with the exchange was that it was offering employees as much as 40 percent returns on all their investments. It was a huge mistake for investors to believe this. For one thing, there is no such thing as guaranteed results, and this goes double for crypto investments considering just how volatile they are. Crypto can go up as easily as it can go down, so offering something as unlikely as 40 percent was proof that the company was likely up to no good.

Lwanga has expressed a willingness to cooperate with police and even says he’d be willing to refund investors their money except all accounts with the exchange have allegedly been frozen. Police are now checking to see if this is a valid claim.

The post Director of Uganda Exchange Dunamis Coins Questioned Over Alleged Scam appeared first on Live Bitcoin News.

Director of Uganda Exchange Dunamis Coins Questioned Over Alleged Scam