Home / Crypto Currency / Zambia: Three Arrested in $2.4 Million Cryptocurrency Investment Scheme

Zambia: Three Arrested in $2.4 Million Cryptocurrency Investment Scheme


zambia cryptocurrency

Advertisement

Three individuals are currently out on bond in Zambia after being arrested over charges related to a cryptocurrency investment scheme they had operated.

The three suspects — Hilda Agnes Raubenheimer, Orient Rio Zekko, and Tapiwa Chirwa — are directors of cryptocurrency investment firm Heritage Coin Resources Limited, per the Zambian Watchdog. They allegedly collected more than 28 million Zambian kwacha (approximately US$2.4 million) from prospective investors who were promised that the money would be invested in cryptocurrency.

According to the Anti-Money Laundering Investigations Unit of Zambia’s Drug Enforcement Commission, the trio collected “K28,346,800.00 by purporting that the company was investing the money collected as partnership fees from the public into Cryptocurrency trade on the web on behalf of the partners when in fact not.”

The three now face charges of engaging in money laundering activities, obtaining money by false pretenses, participating or conducting a money circulation scheme, and operating an unlicensed financial business between June and mid-October.

Bitcoin Not Legal Tender

This comes less than a month since Zambia’s central bank indicated that cryptocurrencies are not legal tender in the country, as CCN reported.

While issuing the statement on cryptocurrencies, 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; Secondly, BoZ does not oversee, supervise nor regulate the cryptocurrency landscape. Consequently, any and all activities related to the buying, trading or usage of cryptocurrencies are performed at owner’s risk,” the Bank of Zambia said in a press release.

Public Interest

At the time, the apex bank of the landlocked African country claimed it was issuing the statement to “safeguard the interests of members of the public and to maintain the integrity of the financial system in Zambia.” Among the risks the bank claimed it was protecting Zambians from included fraud and hacking attacks for which no legal recourse is available in the country.

To its credit, however, the BoZ added that it would ensure that regulation does “not constrain but enable innovation.”

The cryptocurrency stance of the central bank of Zambia is similar, if not a little better, to that of its neighbor to the south, the Reserve Bank of Zimbabwe. This is despite the country formerly known as Southern Rhodesia having the ripe environment for cryptocurrencies as it is not only undergoing a cash crunch but currently uses a variety of foreign currencies including the South African rand and the US dollar.

Earlier this year, the Reserve Bank of Zimbabwe banned all commercial banks and financial institutions in the country from processing crypto transactions for exchanges, traders and investors. But despite the High Court lifting the ban, crypto exchanges in the country still face numerous obstacles.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.
Advertisement
Read more

Check Also

Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.