A Brazilian cryptocurrency firm, Velox 10 Global Limited, collapsed in 2019, leaving thousands of Kenyan investors with significant losses after offering unrealistic returns of 30% to 50% monthly on Bitcoin investments.
The company, operated by Brazilian national Ricardo Rocha, initially attracted attention with a high-profile launch event at Nairobi's Intercontinental Hotel in September 2017. Promises of extraordinary profits lured investors like Esther Muthoni, who invested KSh3.2 million, and Lucy Kamatu, who contributed KSh500,000, according to reports.
Brazilian cryptocurrency Ponzi "Velox 10 Global Limited" which officially launched in Kenya in October 2017 collapses with millions of Kenyans cash. It promised monthly returns of between 30% & 50%, invested in Bitcoin. — Kenyanwallstreet (@kenyanwalstreet) March 4, 2019
Concerns about the firm's regulatory compliance emerged in January 2018 when investors alerted authorities about its unauthorized operations beyond managing non-financial assets. This followed a Capital Markets Authority warning against cryptocurrency investments just days earlier.
Historical precedents of financial fraud in Kenya include the 2007 Deci pyramid scheme, which defrauded investors of approximately KSh2 billion. Recent cases also involve Ekeza Sacco, where a chairman allegedly misappropriated KSh1 billion in member funds.
Experts emphasize the urgent need for enhanced investor education and regulatory oversight to prevent recurring financial scandals in the country.
