Uganda Cryptocurrency Fraud

Cryptocurrency fraud can happen anywhere, but for some reason, it seems that Uganda is particularly struggling with the issue. Many of the perpetrators for fraud tend to be from the United States and Europe and they have been targeting uneducated investors.

One platform claims that it receives, on a daily basis, emails from individuals with “distinctly African names.” Many have reported that they are unable to access their accounts.

Fortunately, the issues are not being ignored. An African nation is having trouble with the cryptocurrency crime wave and accordingly, members of Parliament are asking authorities to do more. In a recent report published by the Crime Intelligence and Invesigations Directors of the Cyber Crime Unit, several MP have asked the government to combat “various scams of companies and individuals who fleece Ugandans of their money.”

A few MLM companies that have allegedly targeted Ugandans include FirstCoin, Emaar Ventues, Questra World, D9 Club, and OneCoin. At this point, there is not enough legislation that can effectively handle the fraud. According to MP Mpaka Mwima, “Most of the people defrauded are the youth and women. This fraud of pyramid schemes must be stopped by the Government. When one scheme collapses, the same individuals form another one. The culprits must be arrested by government.”

Further, “Right now we are using the Computer Misuse Act and the Penal Code Act which are not adequate to deal with these new ways of defrauding people.”

Even though Ugandan authorities may be able to end cryptocurrency MLM scams, they can also go farther by designating them as illegal and to go after promoters. Accordingly, “the MPs said they are working on a motion which they would present before parliament in the course of this week.”