Ugandan executive kidnapped, tortured for ‘crypto’

A Ugandan digital asset executive who was recently kidnapped and forced to transfer his ‘crypto’ is appealing to the country’s authorities to bring the criminals to justice.

Festo Ivaibi was kidnapped outside his home on May 17 by individuals he alleged posed as security agents. The criminals, who were dressed in police uniforms and bore arms, demanded a $500,000 ransom before later forcing him 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 (AI) education initiative.

In a statement, Afro Token assured its token holders that the project had not been affected despite the founder being forced to sell $18,000 worth of the token.

It also alleged that the criminal gang behind the attack conspires with security agents and “two Chinese businessmen” to target digital asset entrepreneurs in the East African nation. It added that there had been 48 similar cases of ‘crypto’ abductions, but the gang had used its influence to have the investigations suspended.

Just days later, the startup revealed that security agents had arrested a suspect: Phineous Biira. The suspect was allegedly tracked down using blockchain forensic tools, which revealed he controlled the address that had received the stolen coins.

“This incident highlights the urgent need for stakeholder engagement and clear policy formulation for blockchain and crypto technologies in the African continent,” the project stated.

“The technology is already here, and the risks, if left unregulated or misunderstood, are too great to ignore.”

‘Crypto’ abductions skyrocket

Still, this week, French authorities charged 24 suspects in a multi-million-euro digital asset kidnapping case. The crime ring has been targeting digital asset traders, prompting one French industry leader to call on authorities to “stop the Mexicanisation of France,” France 24 reports.

“It’s becoming a thing because people think it’s an easy way to get cash. Instead of robbing a bank, they can kidnap someone and get access to their Bitcoin wallet or crypto wallet,” David Seltzer, a cybercrime attorney, told CBS.

Adam Healy, a former United States Marine, concurs, noting that criminals view attacking digital asset owners as “effectively easy money.”

Healy now heads Station70, a digital asset security solutions firm whose clients include CoinShares, Flipside, and Magic Eden.

“It’s a lot easier, lower risk, and it’s a much bigger payout than, say, robbing a bank or robbing a convenience store. You’re not going to get in a gunfight while you’re trying to leave the bank,” he told the New York Post.

Watch: Tech redefines how things are done—Africa is here for it