Rwanda’s Central Bank Warns About OneCoin Investment Scam and Crypto Get-Rich-Quick Schemes
- The central bank of Rwanda warns investors about crypto scams in the country
- The crypto market is plagued with fraudulent schemes
The central bank of Rwanda has recently issued a public service announcement in which they warn about a cryptocurrency scam related to OneCoin. The information was released by the National Bank of Rwanda on Twitter a few days ago.
Rwanda’s Central Bank Warns Users About Crypto Scams
The central bank of the country is worried about Initial Coin Offerings (ICOs) scams and other Ponzi and pyramid schemes that are related to virtual currencies. These companies want to offer fast methods for users to earn money but are in general scams that end up stealing users’ funds. Some of the scams that have been active in Rwanda include Supermarketings Global Ltd, 3 Friends System (3FS) Group Ltd, OneCoin, and also Kwakoo.
According to Behind MLM, the Ponzi side of OneCoin collapsed in early 2017, however, pyramid recruitment of new OneCoin investors persists.
The notice published by the National Bank of Rwanda says:
“The National Bank of Rwanda reminds the general public that these are illegal in Rwanda and investors in such schemes are highly likely to lose their money.”
Users are advised to exercise caution and ensure that their investments are with credible and licensed financial institutions.
— National Bank Rwanda (@CentralBankRw) May 30, 2019
Back in 2017 when the crypto market was in a bull trend and Initial Coin Offerings were expanding, scammers and fraudsters were stealing users’ funds. Authorities became very worried about these issues because many scams stole millions of dollars from users. According to a report conducted by the ICO advisory firm Statis Group, 11 percent of the total funds invested in Initial Coin Offerings during 2017 were lost due to fraudulent activity.