Over 50 church members lose Shs250m in cryptocurrency scam
Tool. Bitcoins, which are used in cryptocurrency. Cryptocurrency scams have been on the rise in Uganda. NET PHOTO
What you need to know:
- Early this week, police said they had arrested two directors in another cryptocurrency scheme company known as Dunamiscoin to assist them in investigations into allegations of fleecing thousands of Ugandans of billions of shillings in similar schemes.
About 50 members of Garden of Peace Church have run to court after they realised they were conned of more than Shs254m in a cryptocurrency scheme.
Pastor John Walakira, who leads the petitioners, in his oath before Lubaga Magistrate’s Court on December 9, states that he decided to institute a private prosecution against Mr Andrew Kaggwa Kulumba, the director of Global Crypto Currency Ltd, because police have not helped the victims to apprehend the culprit.
“I verily believe that Section 42 (1) c of the Magistrate’s Court Act allows me to institute private prosecution against an individual,” Pastor Walakira states.
He narrates that in February, Mr Kaggwa approached him with a proposal to invest his money in the company.
“That the said Andrew Kaggwa I was introduced to by Betty, who prays from Garden of Peace Church, convinced me to give him money with assured returns on investment to the tune of 40 per cent,” Pastor Walakira’s suit reads in part.
He says he formed a group comprising friends and church members and deposited Shs254m.
Pastor Walakira says he deposited the cash in Centenary Bank on an account given to him by Mr Kaggwa.
“I came to learn that the account was operated by Kaggwa Andrew Kulumba and Ntende Hudson as a vehicle through which they could obtain money by falsely assuring me and my group of returns on investment,” he says.
Pastor Walakira adds that despite investing in the cryptocurrency scheme, they have never earned any returns as promised.
“Ever since that time, my group and I have demanded for the returns on investment or even our total investment to no avail and all we get are promises that we shall be paid,” the pastor continues.
“The Uganda police have not been helpful in recovering our money or apprehending the suspects since he is a known conman who previously established a COWE company that conned many Ugandans of a lot of money,” he adds.
The pastor is now seeking court’s permission to draft a charge sheet with offences of obtaining money by false pretence and theft contrary to sections 254 and 261 of the Penal Code Act and then have him arrested and brought to court for trial.
Background
Early this week, police said they had arrested two directors in another cryptocurrency scheme company known as Dunamiscoin to assist them in investigations into allegations of fleecing thousands of Ugandans of billions of shillings in similar schemes. A few months ago, the Finance ministry issued a statement, warning the public about cryptocurrencies.
