Kenyans Lose Millions In Bitcoin Scam Amid Warnings

Kenyans have lost millions of money in online money (bitcoin) scam amid warnings from Central Bank of Kenya (CBK) and Capital Markets Authority (CMA).

The moneis sank with Brazilian crypto-currency firm Velox 10 Global, which lied to Kenyans that it was a global crypto-currency.

People Daily reports that several Kenyans who had invested hundreds of millions of shillings through the firm are said to have lost cash after the firm which guaranteed them millions of shillings in profits if they invested their cash through the firm refused to pay them profits.

The Kenyans were forced to pay a membership fees of ksh10,000 and an upgrade fees of Ksh20,000 with the promise of earning incredible returns totaling up to Ksh400,000 daily.

CBK Governor Dr Patrick Njoroge has consistently cautioned that bitcoin could be a Ponzi scheme based on its volatile movement and further issued a circular warning against trading in the currency. 

Read: Understanding Bitcoin In Kenya During The Festive Season

“Binary reviews, a website that enables investors to assess and test the features of crypto-systems had put Velox 10 Global on the spot three years ago due to its scanty and contradicting information concerning the whereabouts of about the parent firm, unrealistic return on investment, suspicious withdrawal conditions, inaccurate history of Velox 10 profits and results,” reported the People.

It also warned that Ricardo Rocha, the company Chief Executive Officer had no reputation in dealing in crypto-currencies like other companies in that sector. The tell-tale signs of such schemes include deals that sound too good to be true.

The company also made sure that basic pieces of information are unavailable, including the name of owners.