Abduction of Festo Ivaibi
The world of cryptocurrency in Uganda has been shaken by the abduction of Festo Ivaibi, the founder of Mitroplus Labs, an institution dedicated to educating individuals about blockchain technology and cryptocurrency. On May 17, Ivaibi was forcibly taken by a group of armed individuals who deceitfully presented themselves as Ugandan security personnel. This alarming incident occurred near his residence and led him to a remote location in Bunamwaya, a burgeoning town situated just south of the capital, Kampala.
Demands and Release
The assailants demanded a staggering ransom of $500,000 along with access to Ivaibi’s cryptocurrency wallets. After he complied by transferring the demanded amount to their designated Trust wallet, the criminals let Ivaibi go before abandoning his vehicle. Interestingly, shortly following this event, there was a noticeable drop in the value of Afro memecoin—a cryptocurrency launched by Mitroplus Labs in early 2024—believed to be offloaded by the same gang. However, the institution assured the public that no funds belonging to their community had been endangered during the ordeal.
Growing Threat in the Cryptocurrency Sector
Ivaibi’s case is particularly significant as it emerges amidst a series of similar high-profile kidnappings in the cryptocurrency sector, highlighting a growing threat to leaders in this field in Africa. Just days prior, an attempted abduction was made on the daughter of a cryptocurrency exchange CEO in Paris, France, where various influencers had also fallen victim to similar rogue operations. In response to these events, the French government proposed new measures to bolster the safety of cryptocurrency entrepreneurs and their families.
Statistics and Law Enforcement Response
Although Ivaibi’s experience marks one of the first well-documented abductions in the African crypto community, he reported that a total of 48 abductions have been cited, with seven of those connected to a unified crime syndicate. The lack of recognition for cryptocurrencies in Uganda has rendered these incidents largely overlooked by law enforcement.
“The police often dismiss these cases, pointing to the lack of regulation in the crypto space and individual responsibility,”
he explained.
Proactive Measures Taken
Despite this, Ivaibi has taken proactive steps to legitimize his operations—engaging with the Uganda Revenue Authority (URA) concerning cryptocurrency regulations and fulfilling his obligations as a registered trader. Following the abduction, the URA allowed him to access police surveillance to scrutinize footage that could aid in the investigation.
Suspected Criminal Network
Mitroplus Labs also indicated that they suspect an extensive criminal network comprising informants, rogue security officers, and two unidentified businessmen from China orchestrated this kidnapping scheme. They have shared evidence, including photos of the alleged criminals and additional victims, with the authorities in hopes of advancing the case.
