Brazilian cryptocurrency firm Velox Global collapsed in 2019 after less than two years of operation, leaving Kenyan investors with significant losses. The company, which operated in Kenya, required a $200 membership fee and promised returns of 30% to 50% monthly, according to reports.
Investors including Esther Muthoni and Lucy Kamatu reportedly lost KES 3.2 million (USD 32,000) and KES 500,000 (USD 5,000) respectively. Concerns arose when the firm was found operating outside its licensed scope of managing non-financial assets.
The collapse occurred days after the Capital Markets Authority issued a warning against cryptocurrency investments. Velox Global's website was taken offline following the news, with no official explanation provided.
