Cryptocurrency is both a financial-based industry as well as an emerging one and as a result, it suffers from a classic problem that plagues almost every industry that has to do with money which is scams and fraud. Because not a lot is known about cryptocurrency to some segments of society, they are in a vulnerable place which makes them susceptible to dishonest individuals who often prey on them in a bid to dupe them out of money by selling them get rich quick schemes or false investments with ridiculous promises. While a number have been uncovered in recent times, it seems the problem is far from over.
In Uganda, a crypto firm called Dunamiscoins Resources Limited recently closed down after stealing money from their employees and investors.
According to December 5, 2019 reports, the company opened in Masako just last month and invited employees and investors to take part in their digital currency network but only a month after opening, it has closed down with their offices being found empty. The report states that the company had asked individuals to invest in them with the promise of a 40 percent return on their cash investment and had been working with money transfer firms to recruit people across the city.
Besides this, employees were also required to pay 20,000 Uganda shillings ($5) as a registration fee but since then, it has become apparent that this was a scam. All the phone numbers connected to the company are not working and the email address associated with the firm also has been closed down. It should be noted that the deputy governor of the central bank of Uganda has told the public that cryptocurrency businesses online are not regulated to date and then there was limited protection offered to them should they invested in such companies.
As cryptocurrency companies continue to bloom across the world, it is apparent that not all of them are reputable and as time goes on, more checks and balances will be put in place to avoid situations such as this as well as any more losses to investors and employees.