In a chilling development that underscores growing global security concerns for crypto entrepreneurs, Festo Ivaibi, the founder of Uganda-based blockchain education hub Mitroplus Labs, was abducted by armed criminals demanding cryptocurrency ransoms. The attack, which took place on May 17, highlights the expanding reach of crypto-related crime, previously concentrated in wealthier regions like Europe and Asia.
Abduction Orchestrated by Armed Criminals Posing as Law Enforcement
According to an official statement by Mitroplus Labs, Ivaibi was abducted just meters from his residence by men dressed as Ugandan security personnel. He was forcibly taken to a secluded area in Bunamwaya, a town just outside the capital, Kampala. There, the assailants demanded $500,000 and access to his crypto wallets.
Under duress, Ivaibi was forced to transfer crypto funds to the gang’s Trust Wallet, after which he was released, along with his vehicle. The attackers are also believed to have quickly sold a portion of Afro, a community memecoin launched by Mitroplus Labs in 2024. This sudden dump briefly disrupted the token’s price, though the organization clarified that no community funds were compromised during the ordeal.
A Growing Global Pattern of Targeted Crypto Crime
Ivaibi’s abduction comes just days after the attempted kidnapping of the daughter of a French crypto exchange CEO. Recent months have seen a spike in high-profile crypto-linked abductions, especially in France, where crypto influencers and wealthy holders have been targeted. These threats have prompted the French government to roll out protective measures for crypto professionals and their families.
The Ugandan case now marks a disturbing shift, bringing the threat to the African continent, where blockchain innovation is growing rapidly despite uneven regulatory recognition.
Criminal Network Behind Crypto Abductions
In an interview with Bitcoin.com News, Ivaibi revealed that at least 48 similar cases have been reported in Uganda, with seven linked to the same group behind his abduction. According to him, most have flown under the radar due to the country’s lack of formal crypto regulation.
“Police have dismissed these cases, citing unregulated cryptocurrency and individual risk,” Ivaibi said. “But as Mitroplus Labs, we’ve engaged the Uganda Revenue Authority on crypto taxation and participated in knowledge-sharing sessions on blockchain, AI, and cryptocurrencies.”
He added that he is officially registered as a cryptocurrency trader with the Uganda Revenue Authority (URA), pays taxes, and has even incurred penalties for late filings, an indication of his efforts to work within Uganda’s evolving crypto landscape.
In the aftermath, URA reportedly granted Ivaibi access to its police command center, allowing him to review security camera footage to help identify the perpetrators.
Evidence Points to Larger Conspiracy
Mitroplus Labs further alleged the existence of an organized criminal network comprising:
- Rogue security officials
- Informants posing as traders
- Two unnamed Chinese businessmen
Photos of the suspected criminals and additional victims have reportedly been submitted to local law enforcement for investigation.
Rising Threat as Crypto Adoption Grows in Africa
The abduction casts a spotlight on the growing dangers faced by crypto entrepreneurs in Africa, especially as adoption accelerates across the continent. While blockchain technology offers financial inclusion and innovation, its pseudonymous nature and lack of regulation in many countries make it attractive to bad actors.
Mitroplus Labs has been a leading voice in Web3 education in Uganda, pushing for regulation, tax compliance, and blockchain literacy. This latest attack, however, underscores the urgent need for regional security protocols, better law enforcement training on crypto crime, and formal protections for builders in the Web3 space.
