Uganda crypto founder forced to transfer $500,000 at gunpoint

Uganda crypto founder forced to transfer $500,000 at gunpoint

The alarming trend of crypto-related abductions continues, with the latest victim being Festo Ivaibi, founder of the cryptocurrency education hub Mitroplus Labs.

Ivaibi was kidnapped at gunpoint on May 17 near his residence on Bunamwaya Road in Kampala, Uganda, and coerced into transferring $500,000 worth of cryptocurrency to his attackers.

According to an official statement from Mitroplus’s Afro Token Project on X, the kidnappers were armed, dressed in military uniforms, and falsely claimed to be security operatives of the Uganda People’s Defence Forces (UPDF).

The attackers allegedly forced Ivaibi to unlock his crypto wallets, initiating unauthorized transactions.

A portion of Afro Token, a meme coin linked to Mitroplus Labs, was also sold under duress, resulting in further financial losses.

“This is not just an attack on one person, it’s an attack on a growing vision,” the project stated, emphasizing the broader implications of crypto-targeted crimes. 

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Impact on Afro Token and Market Reaction

Afro Token, created on SunPump, a meme coin platform built on the Tron blockchain, saw a sharp decline in value following the attack.

Data from DEX Screener reveals that Afro Token’s market cap dropped by approximately 16.7% post-incident, standing at $1.6 million, significantly lower than its $7.3 million valuation in December 2024.

While some of the stolen crypto was reportedly transferred to Binance wallets, the specific cryptocurrencies involved in the attack remain unclear.

Crypto-Related Kidnappings on the Rise

Mitroplus Labs alleges that this attack is part of a broader, coordinated pattern involving informants posing as crypto traders, rogue law enforcement officers, and two Chinese nationals.

The firm claims that at least 48 similar abduction attempts have been identified, yet many cases have been dismissed due to the influence of the perpetrators’ network.

These types of crimes, commonly referred to as “wrench attacks”, involve physical threats against crypto holders to force them into transferring digital assets. In recent months, such attacks have proliferated worldwide.

Uganda crypto founder forced to transfer $500,000 at gunpoint