A Ugandan digital asset executive, Festo Ivaibi, was recently kidnapped and tortured by individuals posing as security agents. The criminals, dressed in police uniforms, demanded a $500,000 ransom and later forced Ivaibi to transfer his digital assets to their wallets.
Ivaibi is the founder of Afro Token, a local memecoin project, and Mitroplus Labs, a blockchain and artificial intelligence education initiative. The kidnappers allegedly conspired with security agents and “two Chinese businessmen” to target digital asset entrepreneurs in Uganda.
Afro Token assured its token holders that the project was not affected despite Ivaibi being forced to sell $18,000 worth of the token. The company claimed there had been 48 similar cases of crypto abductions in Uganda, but the gang had used its influence to suspend investigations.
Using blockchain forensic tools, security agents tracked down a suspect, Phineous Biira, who controlled the address that received the stolen coins. The incident underscores the urgent need for clear policy formulation regarding blockchain and cryptocurrency technologies in Africa.
This case is part of a rising trend of crypto-related abductions. Recently, authorities in New York arrested two suspects accused of kidnapping and torturing an Italian tourist for three weeks to obtain his digital assets. In France, 24 suspects were charged in a multi-million-euro digital asset kidnapping case.
Experts warn that criminals view attacking digital asset owners as “effectively easy money” due to the potential for large payouts and lower risk compared to traditional robberies. The increasing frequency of these crimes has raised concerns within the digital asset sector, highlighting the need for better security measures and regulatory frameworks.
