Dangerous investments to avoid like the plague

A number of Kenyans lost investments worth about Sh1 billion in a cryptocurrency scheme involving Kenyans and Chinese. Bistream Circle was the Ponzi scheme that fleeced Kenyans of their hard-earned cash. So daring were the fraudsters that in a social media post they mocked and ridiculed their victims.

“I still drive my Ferrarri and some of you cannot afford to eat,” was a post made by the fraudsters on social media.

Last week the nation woke up to shocking murders. The four young victims were suspected to have been involved in cryptocurrency and bitcoin frauds according to media reports.

A cryptocurrency is digital and serves as a medium of exchange through computer networks. It is largely unregulated. Crypto and bitcoin investors often buy the currencies and wait for their value to rise and then sell it at a profit. The profit margin is then what investors capitalise on.

In March this year, the Central Bank of Kenya warned against investing in cryptocurrencies, citing regulations. The regulator further warned that financial institutions that support such transactions would risk losing their licences.

The CBK Governor warned “for every person who wins there are hundreds who lose.”

This is not the first fraudulent scheme to hit the Kenyan market. Many such schemes have been reported where innocent investors are lured by the promise of getting rich quickly. They ignore…