Kenyan Bitcoin investors were targeted by a Brazilian pyramid scheme that collapsed in 2019, leaving participants with significant financial losses. The company, Velox 10, operated under the leadership of Brazilian national Ricardo Rocha and promised high returns through cryptocurrency trading.
Scam Operations ¶
Launched in Kenya on September 20, 2017, Velox 10 required investors to pay a Sh10,000 ($100) membership fee and a Sh20,000 ($200) upgrade fee. Participants were enticed with claims of daily profits up to Sh400,000 ($4,000). A Daily Nation report revealed that some victims lost up to Sh3 million before the scheme collapsed.
Investor Warnings ¶
As of March 2019, the Velox 10 website was inaccessible, and no refunds had been issued. The scheme exploited referral networks and the allure of rapid wealth, with many Kenyans reporting pressure from acquaintances to join. Cryptocurrency experts caution that such models often rely on new investments rather than legitimate trading.
Similar cases highlight systemic risks in the crypto space. In early 2019, Sh13 billion ($137.21 million) in cryptocurrencies was frozen after the death of a Canadian platform founder, underscoring vulnerabilities in digital asset management.
