The attraction of having a decentralised form of cash, as well as the notion that digital money is the future, has made it so popular that individuals are investing in cryptos in the same way that they would in other assets.
It is an increasing global phenomena that eager Kenyans are willing to take risks in order to get money without having to work.
Cryptocurrencies lack a central issuing or regulating authority and instead rely on a decentralized system to record transactions and issue new units.
According to most people, this was a certain and easy way to make quick money,however everything went well until March 13 when users began noticing delays in withdrawals.
With the fall of Bitstream Circle, ponzi scheme established by Kenyan and Chinese fraudsters, its investors largely Kenyans began to experience delays while attempting to withdraw their funds.
In December 2021, the company debuted on the internet, promising a daily profit return of 5 per cent to 10 percent of the deposited sum.
It soon attracted over 10,000 followers on its Telegram page; a $20 (Sh2,340) charge was required to join the “Bt Elite Team” group; investors were also assigned a mentor who would educate them how to convert their shilling cryptocurrencies, trade, profit, and withdraw their cash.
“You are a bunch of brainless races, see you on our next plan Bye, haha. I am living a luxurious life with your dollars. If you have invited friends, wait to be killed by your recommenders. Idiots. There will be a time to meet,” an administrator of the page posted to the 10,914 investors.
Bitstream Circle abruptly vanished from the internet. Its website, mobile applications, and Telegram page were all inaccessible.
Crypsense Digital Group’s forensic investigation revealed that it had defrauded people of $10,048,350 (Sh1.18 billion) in just 97 days.
This poses the question why would people be so easily duped? Is cryptocurrency trading proven so appealing to criminals all across the world? Why is Kenya a worldwide hotspot?
With exception of other currencies that can be used to purchase goods and services, the value of crypto is managed and maintained by no central body.
Cryptocoin supply and demand are managed by a sophisticated method known as blockchain technology, which is effectively an open and distributed ledger that records transactions in code.
Bitstream Circle was founded in this context. It was registered in the United Kingdom, according to its YouTube Page, which is the only digital footprint the company has left.
According to the UK company registry, it was registered on November 25, last year under company number 13764417, with the purpose of “administration of financial markets.”
The register shows that Bitstream Circle has one director: Qian Yang, a Chinese born in November 1986 with 10,000 shares worth £10,000 in the company (Sh1.45 million).
J&C Business (UK) Ltd is listed as the company’s secretary. This firm, which shares Bitstream’s residential address, is named as a secretary in many others, including Chogori Industech Ltd, Julycasa Ltd, DC Golden Ltd, and CH Group Industry Company Ltd, all of which are registered in the UK and share Bitstream’s address.
Qian Yang’s next step after registering for Bitstream Circle was to launch a website and a mobile phone application.
In December the company’s YouTube page “Bitstream Circle” and two websites – www. btgroup.win and www.bitstreamcircle.co.he– went live.
A mobile Google app with the same name later called ‘BT,’ was established for investors, albeit they could also trade on the two websites.
Several Kenyans were hired as mentors and customer service representatives to help the organisation gain reputation.
Those who needed their monies quickly were told: “You must recharge 10 percent of the funds in your account and transmit your ID to complete authentication.” It just takes a few minutes after authentication to withdraw funds.”
Unseen to them, there was no money available for withdrawal, and the company was closing down.
Desperately, some placed 10 per cent more of their previously deposited funds, intending to withdraw all of their investments.
What they did not realize was that they were being duped even more.
