NuruCoin, a Kenyan cryptocurrency which got quite popular in early 2018, has closed shop after allegedly raising KES 2.7 billion (Approximately $27m) from investors.
According to a local daily, NuruCoin employed a multi-level marketing approach and was well marketed among residents of Murang’a, Kitengela, Machakos, Nyeri, Meru, Nakuru, and Kericho towns of Kenya.
Apparently, over 11, 000 investors participated in the NuruCoin Initial Coin Offering (ICO) organized by ChurchBlaze, the company behind NuruCoin and the ICO.
Many of the investors have revealed to the daily how much they invested and the failed promise of returns months after they put up their money.
All the ChurchBlaze offices across the above towns have been closed including their main office in a Nairobi suburb.
Questions as to what happened and why the regulators were not involved in such a massive fundraising campaign are still pending. Such huge funding should only be raised by selling shares on the Nairobi Stock Exchange after receiving a nod from the Capital Markets Authority (CMA).
In light of the growing concerns around cryptocurrency scams and ponzi schemes, the blockchain associations of East Africa have put out a joint press statement in order to educate and warn potential investors to be on the look out for fraudulent crypto investments.