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Rwanda’s National Bank Issues Warning against Rising Prevalence of Crypto Scams

The National Bank of Rwanda has released a public service announcement warning people about alleged crypto scams that are active in the country.

Crypto-Linked Ponzi Scams

In an official Twitter post released on May 30, Rwanda’s central bank alerted citizens about crypto-linked Ponzi scams and initial coin offering (ICO) schemes that allegedly offer early adopters a fast and big return on their investments.

These crypto scams are said to be prevalent in Rwanda through companies like 3 Friends Systems (3FS), Kwakoo (OnyxCoin), OneCoin and Supermarketings Global Ltd.

The National Bank of Rwanda also warned investors to investigate the projects and companies they’re planning on investing in. It also reminded the general public that the government and banking institutions do not offer damages to people that have been victimized by the scams.

It was previously reported that a study conducted in 2018 revealed that more than 80% of ICOs during 2017 were scams. However, only about 11% of the funds invested in coin offerings during that year were lost due to nefarious activities.

Crypto Pyramid Scheme Mastermind Arrested

Governments around the world are trying to crack down on these frauds. Russian law enforcement was reportedly behind the international arrest of the said mastermind of a cryptocurrency pyramid scheme based in Kazakhstan. The scam apparently cost one investor to lose an estimated 14 million Kazakhstan tenge, or about $36,700. The arrest happened on May 28. The suspect was previously pronounced as wanted by Interpol after fleeing Kazakhstan early this year.

There are also two major accusations and investigations on crypto scams in Brazil and the United States this month. The scams were reportedly being run around the world.

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