This week, the Uganda Police Force broke its silence over the latest Ponzi scheme that has left a section of Ugandans counting losses.
Denied by the real Hut 8 Corporation, the legitimate US-based digital infrastructure and Bitcoin mining firm, the alleged Ugandan subsidiary collected money from the public over months, promising high investment returns.
For instance, with an ‘investment’ of Shs150,000, one was promised up to Shs2m in one of the so-called investment options.
Some unsuspecting Ugandans, including those who have now become accustomed to how these schemes operate – jump in early enough and reap returns before the pyramid comes crumbling down under its weight – poured in money in the hope of becoming overnight millionaires.
In the end, as predicted by some of ‘Hut 8’ critics on social media, it ended in tears. ‘Investors’ now can’t withdraw their money, with desperate victims being asked to deposit more money before their profits are unlocked.
‘Victims should also exercise caution when approached by individuals claiming they can recover lost funds in exchange for an upfront payment, as this may constitute another form of fraud,’ police spokesperson Kituuma Rusoke cautioned.
‘Victims should provide any available evidence, including payment records, mobile-money and bank transaction references, telephone numbers, social-media accounts, online links, screenshots, chat messages, and details of individuals who recruited or promoted the platform,’ he appealed to the victims, who were recruited mostly on social media.
The Hut 8 Ponzi scheme is the latest online investment fraud that Ugandans have faced over the years. Others include BLQ, YEPBIT, In On Fund, and Chicken Chicken, among others, which operated on similar pyramid structures before vanishing with investors’ funds.
It is our plea, therefore, that our authorities devise means to protect the public from these scammers who have found a welcoming home in Uganda.
Mr Rusoke says they are working in collaboration with regulatory and financial sector agencies to get to the bottom of the matter. Sadly, they usually swing into action too late, right after the pyramid has collapsed and the fraudsters have fled with the loot.
‘You Ugandans, thank you; you have been fooled, but I am coming with another trick after this money is over,’ posted one of the BLQ Football Club scam leaders on Telegram before they went dark in October 2022, with a loot that was estimated to be more than Shs60b.
All relevant authorities – be it police, Bank of Uganda, Capital Markets Authority or Financial Intelligence Authority – not only need to educate Ugandans on what to watch out for in these fraudulent investment schemes, but also how to verify that a company is legitimate before putting their hard-earned money into a venture that could vanish overnight.