Three Arrested In Zambia For A $2.3 Million Cryptocurrency Investment Scheme

Three arrested in Zambia following a $2.3 million scheme scam.

Three individuals are currently arrested over charges related to a cryptocurrency investment scheme they operated.

The three suspects- Hilder Agnes, Orient Rio Zekko, and Tapiwa Chirwa are the founders and directors of the Cryptocurrency firm- Heritage Coin Resources Limited according to the Zambian Watchdog.

They collected more than 28 million Zambian Kwacha, approximately $2.4 million from prospective investors who were promised the money was to be invested in Cryptocurrency. According to Zambia's Anti-Money Laundering Investigations Unit of Drug Enforcement, the money was a fee from each partner to trade crytos online on behalf of the investors.

The three are now facing charges of Money Laundering activities i.e obtaining money by false pretense, participating or conducting a money circulating scheme and operating an unlicensed financial business between June and October.

Two months ago, Zambia's Central Bank indicated that Cryptocurrencies are not legal tender in the country. The Bank of Zambia disclosed that it had done so in public interest after receiving inquiries related to the legal status of bitcoin in the Southern African country.

Cryptocurrencies are not legal tender in the Republic of Zambia; They insisted BoZ does not oversee, supervise nor regulate the cryptocurrency landscape. Consequently any and all related activities related to the buying, Trading or usage of cryptos are performed at the owner's risk.

At the eve of this year 2018, the Reserve Bank of Zimbabwe banned all commercial banks and financial institutions in the country from processing crytocurrency transactions for exchange, Traders and investors. Despite the High Court lifting the ban, cryto exchange in the country still face numerous ups and downs.