Ugandans lose millions in suspected Hut 8 ponzi scheme
The scheme attracted investors by promising unusually high returns, with people encouraged to invest amounts ranging from Shs50,000 to millions of shillings in exchange for quick profits of up to Shs350,000 within three days.
Thousands of Ugandans have reportedly lost money in a suspected investment scam linked to a platform known as Hut 8, with many victims said to be from Kasese and other parts of Western Uganda.
The scheme attracted investors by promising unusually high returns, with people encouraged to invest amounts ranging from Shs50,000 to millions of shillings in exchange for quick profits of up to Shs350,000 within three days.
Using WhatsApp and Telegram groups, promoters allegedly showed fake crypto-mining activities and convinced people that their money was generating guaranteed daily earnings. Some local leaders and community activities were reportedly used to build trust and legitimacy.
Early investors received payments, encouraging more people to join and recruit others through referral links. However, reports indicate that the payouts were funded by money from new investors rather than actual crypto mining.
When new investments slowed, withdrawals were reportedly blocked, the platform disappeared, and many people were left counting their losses.
Experts warn Ugandans to be cautious of schemes promising unrealistic returns, noting that quick wealth promises are often signs of Ponzi schemes.
