Business
Crypto currency victims shed crocodile tears
An estimated 200 Ugandans this week hit a dead end in their efforts to find help from the government following the closure a Crypto currency company that cheated them of billions of dollars.
Angry and many on the verge of losing their homes they staked in banks to obtain loans to invest in the bogas opaque company, the victims this week tried to march to Parliament to seek remedy.
But the victims, most of them down-town traders, were stopped by the Police near the New Taxi park in Kampala as they tried to march to Parliament.
The extent of the losses became apparent after the Crypto Currency company named Dunamis Coins Resources Company collapsed in early December of 2019.
Although the directors of Dunamis who included Samson Lwanga 37, and Mary Nabunnya, were later arrested and charged with obtaining money by false pretense, the victims do not think they will recover their money.
They instead blamed the government, especially the MicroFinance Regulatory Authority, for abdicating its duty of monitoring companies it regulates.
Godfrey Katongole, Chairman of the Kampala Arcades Traders Association who had led the victims in protest, informed journalists that it was mainly reluctance of Uganda Microfinance Regulatory Authority (UMRA) that caused them to lose money. They wanted the Speaker of Parliament to summon officials from UMRA to explain.
He said: “Parliament has the authority to question officials from Uganda Microfinance Regulatory Authority for licensing these people to come and rob Ugandans.”
UMRA is the agency that licensed Dunamis as a money lender company although it diverted into a totally illegal business of selling crypto currencies.
The victims say that UMRA slept on its job by failing to closely monitor Dunamis to ensure that it did business for which it was registered.
Government disowns victims
The government of Uganda last year warned the public against investing in crypto currencies notting that they were not regulated by any government agency.
In September 2019, the Minister of Finance Matia Kasaija warned people to stay away from Crypto currencies.
The warning seems to have come too late for many victims who say they had already invested their
money.
Following the warning, it means that efforts by the victims to recover their money, could most likely prove futile.
Gov’t Etuyambe ‘testimonies’ Jacob Kyazze (not real names) told The Sunrise, that he invested in Dunamis after checking that the company was registered.
“Before joining, I carried out investigations and found the company had all the necessary licenses to operate,” Kyazze said.
He adds that he was duped by the company in the beginning when it gave him some profits, which lured him into obtaining a loan from Centenary bank to get more.
“At first, I received my profits, this made me trust them, thereafter I went to Centenary bank where I got a UGX10 million loan and deposited all of it in coins. On coming to check on my money after one month, I found their offices were closed,” he narrated.
Kyazze has cried out to the government for help saying he is on the verge of losing his house to Centenary for failure to repay the loan. He cried out to the President to intervene in their matters
“I am left with a short period of time before the bank can take my house and I don’t even know what to do next. I appeal to our loving President Museveni to intervene and we get our mone back instead of suffering like orphans yet he is there,” said Kyazze.
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