Some thousands of Kenyans fell victim to an online cryptocurrency ponzi scheme where they lost Kshs 1.8 billion of their hard earned money they had invested after being promised massive returns.

According to a report by the Nation, the Kenyan investors had joined the scheme dubbed Bitstream Circle designed by Kenya and Chinese fraudsters who popularized it on a social media group on Telegram, sharing the great successes from investments that wooed their potential victims.

To be added to the “Bt Elite Team” group, one had to make a $20 or a Kshs 2,340 deposit and upon joining the group, investors were assigned a mentor who would show them how to convert their shillings into cryptocoins, trade, earn profit and withdraw their money.

The investors were promised a daily profit return of five to ten per cent of their invested amount, and for many who were desperate to make quick cash, they began pouring in their money into the scheme.

The company that appeared on the internet on December 7, 2021, amassed more than 10000 followers on the Telegram account in quite a short time till one day in March when all hell broke loose.

Those who tried withdrawing their money beginning March 13 began noticing delays, which the firm assured was just an upgrade of its systems and that they were working on it. This lasted for hours and many started growing frantic , raising their concerns on the group.

Then doom fell on March 14 when the Bitstream Circle was suddenly wiped off the internet, with its website and mobile applications inaccessible to the thousands who had channeled their money to the company.

Their fears were confirmed by messages sent on the Telegram page by the crypto company founder who hurled insults and berated them for falling victim to the scheme.

“You are a bunch of brainless races, see you on our next plan.

“Bye, haha. I am living a luxurious life with your dollars. If you have invited friends, wait to be killed by your recommenders. Idiots. There will be a time to meet.” 

“I still drive my Ferrari and some of you can’t afford to eat," the last message by the founder read.

The aggrieved investors began combing through any information that would lead them to the scammers, until a forensic analysis by Crypsense Digital Group showed that the company had scammed people $10,048,350/Kshs1.18 billion in a record 97 days.

It turns out that the Chinese fraudsters created the website and recruited some Kenyans as mentors and customer care agents whose task was to convince unwitting investors to join the company through training seminars across the country. They guided them in investing and trading through platforms such as Binance where they would see their deposits grow and would make the withdrawals.