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Dozens suffer losses in sham cryptocurrency scheme in Masaka

Closed offices of Dunamiscoin Resources Limited

Closed offices of Dunamiscoin Resources Limited

Dozens of people in Masaka district are counting losses after investing in a sham a cryptocurrency business scheme. Dunamiscoin Resources Limited opened in Masaka town in November this year and started enrolling clients on its digital currency network.  

However, several people are crying foul after learning that the company, which has been operating on Laston Business Centre in Masaka town has closed shop. Joseph Musiitwa Natakemula, who operates a boutique next to the closed offices, says they found the offices empty when they turned up work for work last Thursday.

He explains that the company employees have been luring several people to join their network with promises of up to 40 per cent interest on their cash deposits. Musiitwa says the company has been recruiting clients through mobile money agents around town who would direct clients to their offices. 

He says, besides directly obtaining money from unsuspecting clients, Musiitwa says that the company had also recruited at least 50 local employees to work as marketing executives, cashiers, marketing managers, offices assistants, receptionists and banking managers among others.

John Marry Ssemujju, who is in his senior six vacation, has been working as a salesperson for Dunamiscoin. He says the company fleeced them of all the money they paid for interviews and registration, with promises of paying them high-interest rates in dollars.    

He explains that besides luring them to open accounts with the company, each of the applicants was asked to pay Shs 20,000 for registration, only to find the office deserted the following morning when they turned up for work. 

Herman Ssentongo, the Masaka resident district commissioner has ordered for security surveillance of the company offices in a bid to apprehend some of the operators to help them recover the lost money. He has called upon all victims to come out and register complaints with security to help them follow up the matter.     

Efforts to speak to any official of Dunamiscoin failed to yield results as all phone contacts on their marketing brochures were unavailable. Notably, Bank of Uganda has severally warned Ugandans to be extra cautious with such Ponzi schemes, saying they are not regulated and monitored in the country.

In a related development, another cryptocurrency company, Global Cyprocurrency Uganda has reportedly conned over 200 victims out of Shs 4.4 billion. According to a report by the New Vision, although the company had collected over Shs 10 billion from over 1,000 clients from its 13 branches countrywide, last month, the company wired $1.2m (about Shs 4.4 billion) to a foreign account leaving just Shs 105 million on its bank accounts in three local banks.

The proprietors including Andrew Kaggwa have since been arrested by the Internal Security Organisation after complaints from some army officials who'd invested over Shs 1 billion in the company with the hope of getting 40 per cent interest. 


-1 #1 Willy 2019-12-09 13:26
Cryptocurrency is not legal tender in any country. Cryptocurrency is really cryptic business, though it appears to be doing well in some countries.

The corruption and dishonesty of the companies and individuals operating that kind of business in Uganda make the situation even worse.
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+3 #2 Kelly 2019-12-09 13:33
While I really “sympathize” with the “victims” of such scams, my other not so sympathetic side would not completely exonerate them from being accomplices.

Let’s be realistic. You wake up one day in this hard economic times and expect to just scrap some money from somewhere, dump with someone and expect a weekly/ monthly reasonable something from somebody! Hakuna kazi-just like that! Is it poverty? Investment madness? Laziness? Get-rich-quick attitude?

How else do you expect us Ugandans to learn a thing or two? From the ubiquitous companies like TEAM, Caring for Orphans & Widows (COWI), Front Page Microfinance…etc Ugandans are being conned left, centre and right.

Sports betting, gambling, Middle East enslavement (Vulgarized as labour externalization).…to so called “Network marketing” (GNLD, Forever Living, Quesnet…), they all bear similar characteristics:-the laggards bear the losses!!!
And how surprisingly ISO, CMI RDCs don;t know???
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+1 #3 Concerned Ugandan 2019-12-09 15:24
"The proprietors including Andrew Kaggwa have since been arrested by the Internal Security Organisation after complaints from some army officials who'd invested over Shs 1 billion in the company with the hope of getting 40 per cent interest."

It is highly likely that these army chaps diverted army funds in the hope of getting rich quickly! Now that the bubble has burst they are panicking!
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-1 #4 J.W. Kule 2019-12-09 16:15
It is a shame. Where are the authorities? A business opens, operates without knowledge of the authorities?
Why have systems rotten to the core?
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-1 #5 Amooti Mugi 2019-12-09 21:25
That likely why it is nowadays too dangerous to be an African in Africa!!!!!!!!!;

Money has been stolen under their noses!!!!!!
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0 #6 Kinvinvi Ssekyeru 2019-12-10 12:03
Bank of Uganda has been warning you but you refused to listen, An African proverb says that, 'The ears that don't listen are cut off with the head'.

The Bakonjo have a similar proverb that says, "The ears that do not listen to warnings only hear when on fire'.

You just wish you listened to Dr. Emanuel Tumusiime Mutebile
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0 #7 ugthinker 2019-12-10 19:00
Much of what happens to Ugandans today has a direct link to the ever absent government when it comes to securing Ugandans and their properties!

These scammers operate in broad day light with trading licences issued by government agencies.

Why is it that no one follows up on the nature of business these people do? Society in all countries is safeguarded by governments, what happened to ours?

Where is the financial intelligence authority? How can a doggy business stack billions of shilling without anyone interesting themselves? Are we really safe?
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