Kenyans Lose Millions As “Investment” Company ‘Live Auction Kenya’ Goes Under

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[IMAGE/ COURTESY]

Just before the dust settles on the loss made by people globally through a snowballing company Crowd1, thousands of Kenyans are now counting losses after an “investment” company Live Auction Kenya disappeared with millions they “invested”.

The company was launched August 24, 2020, and by the time it closed it had 2,265 likes on Facebook and over ten WhatsApp groups full of “investors”.

The “investors” were required to deposit a minimum amount of Ksh1,200 to start “trading”. The company which seemingly is from South Africa promised 30 percent returns in just four days, 60 percent returns in eight days and 95 percent profits in just 12 days.

This was enough bait to attract thousands of gullible Kenyans, with some investing thousands as they tried to make money through the “magic”.

On the Facebook page that has since been abandoned, the company promised that the system was a “continuous one with minimal risk”.

Read: Mansa X: Another Ponzi Scheme Trying To Fleece Kenyans?

“Just like bitcoin our shares work on demand and supply algorithm, while some are buying, others are selling making it a continuous system with minimal risk. In Live Auction, you don’t need referrals to earn, referring other members is optional (where you make 5% continuous referral bonus whenever your downlines buy and sell our shares),” the company alleged.

As early as two week ago, the “investors” were getting an error message on the website, and by the time we investigated the matter the website had gone down.

The company was operating two domains, https://liveauction1.cash/ and https://liveauction.cash/, all which are no longer available.

The Facebook Page which was the main referral point has now been left without an admin, making it difficult to trace the owner.

The company claimed that people earned money by buying and selling “shares”. It is not clear which shares were being traded, and under what regulations.

In a crafty manner, the “system” does not have customer care contacts, and the only help was shared on their Facebook page.

Since going under, the company has not responded to questions on their Facebook Page.

Business Times is actively investigating this matter and will subsequently update you on any developments.

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