Ugandan law have seized Samson Lwanga, one of the directors of the declared cryptocurrency pyramid scheme Dunamiscoins Resources Limited.

As domestic news publication Daily Monitor reported on Dec. nine, the police arrested Samson Lwanga, one of the 4 directors of Dunamiscoins. The company in question is allegedly a cryptocurrency scam, which involved over 10,000 people and reportedly managed to defraud victims of x billion Ugandan shillings ($2.7 million).

Investigation into the case

Patrick Onyango, a spokesperson for the Kampala Metropolitan police force, said that the police force-enforcement agency submitted a general inquiry file and is still conducting its investigation into the instance. Onyango added:

"According to him (Lwanga), they are willing to refund the money, but the problem is that Financial Intelligence Authority froze their accounts. And they cannot access or withdraw any money. We are going to go far touch with Financial Intelligence Potency to show if what Lwanga is telling the states is true on freezing the accounts."

According to Lwanga, most of the victims deposited sums between i 1000000 shillings ($271) and ten million shillings ($2,715). As Cointelegraph previously reported, Dunamiscoins convinced people to bring together the firm past promising twoscore% returns on greenbacks investments. The firm was allegedly working with money transfer companies in the city to recruit new people to the scheme.

Cointelegraph reached out to an email address mentioned on Dunamiscoins' website but to receive a notice that the listed address could not exist constitute.

Dangers of crypto Ponzi schemes

Before this twelvemonth, deputy governor of the Banking company of Uganda, Dr. Louis Kaskende, warned the public near the limited protections offered to them when they invest in unregulated cryptocurrencies. In his remarks, Kaskende clarified that the central depository financial institution does not take comprehensive oversight of all financial services firms and institutions and that its supervision typically spans commercial banks, credit institutions, foreign exchange bureaus and money remittance service providers.

Crypto pyramid schemes have gained popularity among fraudsters, and sometimes they footstep over the bounds of but luring potential investors. In mid-October, Glasgow-based Jen McAdam claimed supporters of the alleged OneCoin pyramid scheme are sending her death threats, mainly through Facebook.