Directors of Crypto Pyramid Scheme “Dunamiscoins” Appeared Before Court

Two directors of pyramid scheme Dunamiscoins, a once thriving cryptocurrency scam in Uganda, faced trial on Monday and were charged with 65 crimes connected with obtaining money by false pretense.

Local news website The Observer has reported that state prosecutors registered over 4,000 complaints against the scam conducted by the Dunamiscoins organization. The pyramid scheme which existed from February 2018 to December 2019 finally broke down, although inquiries are still ongoing.

The scammers promised 30% interest in 21 days, thus duping people into approximately $37,600.

Earlier reports revealed that by the moment of collapse around 10,000 people were involved in the scam, with $2.7 million ending up in scammer’s pockets.

Suspects pleaded not guilty

As stated by The Observer, directors of now-dead Dunamiscoins Resources Limited, Samson Lwanga, 37, and Mary Nabunya, 53, proved not guilty to the charges and were remanded to Luzira prison until the case will be taken into consideration again.

The lead complainant, Haruna Asiimwe, stated, that Dunamiscoin’s officials tricked people into giving them money, assuring high interest rates in short periods of time. When the organization ceased to exist in December, the people were left with nothing.

An earlier report from 2019 by the Uganda Police showed that Dunamiscoins directors had stated that they were ready to refund investors, but had no possibilities to do so, because their local bank accounts were blocked by the Financial Intelligence Authority.

Since their arrest on December 10 the suspects have been in police custody, and now are remanded in Luzira prison until January 22, when the case will be taken into consideration once more.

Employees and investors left out

Dunamiscoins closed abruptly in Masaka in December, just one month after opening. Locals noted that the organization defrauded not only investors, but also employees of money they paid for registration in the scam.

After Lwanga was arrested, he stated that most investments ranged from $270 to $2,710.

In spring 2019 the deputy governor of the Bank of Uganda, Dr. Louis Kaskende, warned investors about little protection perspectives they have when investing in unregulated cryptocurrencies.