Rwanda’s Central Bank (BNR) has issued a warning to citizens about unauthorized online financial trading platforms that have been scamming people out of their money. The bank emphasized that such activities are illegal in Rwanda, and anyone engaging with these platforms does so at their own risk.
Fraudulent online money trading platforms have been increasing, with many Rwandans falling victim to scams promising quick wealth. Last year, a company called Super Free to Trade Ltd (STT) left many people in financial ruin after luring them in with false promises of high returns.
Gerard Nsabimana, Director of Financial Institution Conduct at BNR, stated that these fraudulent platforms operate under the guise of cryptocurrency and other online investment schemes.
“There are at least four major fraudulent schemes we have recently identified. One is called Die Equipment, which falsely claims to provide agricultural machinery from an American company. However, this is entirely a scam,” Nsabimana said.
He also highlighted other illegal platforms, including Pi Network, which operates as a cryptocurrency scheme, Dynace, which claims to provide medicinal products, and FlexFunds, another deceptive investment platform.
BNR emphasized that these platforms operate without legal regulations in Rwanda, leaving investors vulnerable to significant financial losses. Nsabimana warned, “Many people have lost money through these scams. For example, a company called Billionaire Traders reportedly caused losses amounting to RWF 10 billion.”
The bank further explained that cryptocurrency and other unregulated digital asset trading come with significant risks, including lack of legal protection, potential for fraud, extreme price fluctuations, and overall lack of transparency.
Until regulations are established to govern these types of investments, BNR advises Rwandans to avoid engaging with such platforms to prevent financial losses. Authorities continue to monitor the situation and urge the public to report any suspicious activities related to online financial trading.
