Velox 10 Global, a little-known company that claimed to trade in bitcoins lured thousands of Kenyan investors into the world of cryptocurrency and allegedly disappeared with hundreds of millions of shillings.
The firm, which was founded by Brazilian Ricardo Rocha, promised those who invested in the company would mint millions of shillings in profits and would be ranked among its biggest investors by April 18, 2018.
The firm charged $100 (about Ksh 10,000) as a membership fee, but members needed to upgrade by paying an additional $200 (Ksh 20,000), with the promise of earning up to $4,000 (Ksh 400,000) daily.
It also promised a free five-day trip to the United Arab Emirates, where they would meet “top global business gurus”.
Esther Muthoni, a businesswoman, was among the thousands of Kenyans who fell for the fraud and invested her life savings worth Ksh3.2 million in the scheme.
When Velox premiered in Kenya on September 20, 2017, at a colorful launch at the Intercontinental hotel in Nairobi, Muthoni and others were promised more money if they introduced people to the idea.
She introduced her friend Lucy Kamatu, who also fell victim after she invested Ksh 550,000 into the scheme.
In January last year, a group of seven filed a case at the High Court seeking to stop Velox from operating in Kenya. They claimed that they had invested money into Velox but were worried that the firm was operating outside its mandate: handling non-financial assets.
The group also wanted CBK, Capital Markets Authority and the Directorate of Criminal Investigations ordered to take action against Velox and its founder.
Rocha had been arrested shortly before the seven filed the case but was released shortly after.
Flying Squad deputy head Jackson Owino on Friday told Nation that investigations into the scheme were ongoing.
A source at Central Police Station in Nairobi stated that complaints had been raised against another digital currency company but the accused opted to settle the cases out of court.