Crypto-currency firm Velox 10 Global goes down with investors’ money

A company dealing in crypto-currencies has gone under with millions worth of Kenyans’ money. The firm operated by Brazilian national, Ricardo Rocha, began its operations in Kenya with much fanfare by hosting a launch party at the Intercontinental in September 2017.

Velox 10 Global promised unusually high returns of between 30% & 50% every month, invested in Bitcoin. Some Kenyan investors plowed in millions of shillings expecting huge profits. As per a Daily Nation article, Ms Esther Muthoni, a Kenyan businesswoman, put in KSh3.2 million while her friend, Lucy Kamatu, put in KSh500,000.

Investors at the Brazilian firm raised concern with law enforcers in January 2018 after they noted that the firm was operating outside its licensed operations of handling non-financial assets.

The incident comes just a few days after the Capital Markets Authority warned Kenyans against investing in crypto-currencies. It is not unusual for Kenyan investors to lose money in dubious schemes. In 2007, investors lost approximately KSh2 billion in of the country’s largest investment scams -Deci pyramid scheme.

Also Read; CMA Cautions the Public against Kenicoin Initial Coin Offering and Trading

On the other hand, members of Ekeza Sacco are still demanding they dues after the firm’s chairman illegally transferred funds worth KSh1 billion into his personal account.

These incidences highlight the need for the government to protect gullible investors from frauds. Clearly, there’s limited financial knowledge among ordinary Kenyans.