Velox 10 Global, a bitcoin pyramid scheme operating in Kenya has reportedly closed shop with hundreds of millions of shillings belonging to its customers.
Launched in September 2017, the company founded by Brazilian, Ricardo Rocha promised ‘investors’ earnings up to $4,000 in daily dividends.
This was after potential investors paid a Sh10,000 ($100) membership fee, and upgraded with an additional Sh20,000 ($200) to earn higher benefits.
According to a report by Nairobi News, the biggest investors were also promised mouthwatering benefits that included a 5-day trip to the United Arab Emirates to meet top global business gurus.
The report said even though authorities, including the then Central Bank of Kenya Governor Njuguna Ndung’u, had earlier warned Kenyans about investing in cryptocurrency, most apparently did not heed the warning.
A businesswoman, Esther Muthoni had invested Sh3.2 million ($32,000). Investors were promised up to 50% returns on investment and more if they referred family and friends.
Esther had introduced her friend who invested Sh550,000 ($5,500). Both, with countless other investors never recovered their investments.
This sad tale is similar and reminiscent of the 2016 Nigerian experience. At the time, revived Russian pyramid scheme Mavrodi Mondial Movement (MMM) held Nigerians hostage and later closed shops with millions of investor money.
ha ha some bitch wanted to sell me some crypto-currency investment …eti i give 400k n will be getting 50k a month…n i can withdraw my initial investment if i want…
Even when Google is free of charge, people still fall for such scams. I have no sympathies.
Before investing that kind of money, what prevents someone from researching and finding out what Bitcoin is and how it works.
Bitcoin is not a scam, but people will be milked money in its name.
There is nothing like a membership fee in purchasing bitcoin, there is nothing like fixed 50% returns.