$2.7m Dunamiscoins ‘scam’ directors charged

A pair of suspects have been charged over an alleged cryptocurrency scam that prosecutors claim defrauded 4,000 Ugandans out of $2.7m.

Samson Lwanga, 37, and Mary Nabunya, 53, appeared in court on Monday and were charged with 65 counts tied to obtaining money by false pretence, reports Ugandan newspaper The Observer.

Dunamiscoins Resources Limited opened in Masaka in central Uganda in November and started taking money from local clients – promising 40% interest.

However, the firm’s office closed and angry investors were left with nowhere to turn after Dunamiscoins apparently disappeared with their cash.

The suspects fraudulently obtained between Shs 500,000 (£103) and Shs 140 million (£28,730) from each of the alleged victims. The suspects pleaded not guilty and have been remanded in custody until the next hearing on January 22.

State prosecutors told the court that they have over 4,000 registered complaints against the suspects – and there may be more to come.

Last month, Mr John Marry Ssemujju described how he took a job as a salesperson for Dunamiscoins and invested money in it.

He said: “They told me it would help me a lot. They said they would give me a job.

“I went to their offices in Kampala for an interview. They then convinced me to invest some money with them saying I would get it back with high interest in dollars.”

Dunamiscoins Resources Limited had set up branches in Kampala, Masaka, and Mbale.

Coin Rivet recently reported how a Belgian financial watchdog said cryptocurrency scams are on the rise and is warning investors to be wary.

The Belgian Financial Services and Markets Authority (FSMA) recently updated its list of known cryptocurrency investment scams.

The number of fraudulent websites known to exploit trusting victims has risen to 131.