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In a shocking incident that has rattled Uganda’s burgeoning cryptocurrency community, Festo Ivaibi, founder of Mitroplus Labs and Afro Token, was abducted on Saturday, May 17, 2025, by armed individuals posing as Uganda People’s Defence Forces (UPDF) operatives.
The attackers, wielding guns and dressed in military uniforms, ambushed Ivaibi near his home along Bunamwaya Road, forcing him to transfer $500,000 (approximately UGX 1.9 billion at current exchange rates) in cryptocurrency from his wallets, including Binance, to their trust wallet.
According to a statement released by Mitropius Labs, the assailants coerced Ivaibi under severe duress, compelling him to access multiple crypto wallets and execute a small sale of Afro Token, which briefly impacted the market but has since stabilised.
The company emphasised that no community funds were compromised beyond the forced sale, and their tech and security teams acted swiftly to wipe compromised devices and secure all wallets.
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A formal report has been filed with the police, and investigations are underway, with Mitroplus Labs alleging the involvement of a ring of informants, rogue security operatives, police, and two Chinese businessmen.
The statement claims at least 48 similar cases have occurred in Uganda, often dismissed due to the influence of this syndicate.
Rahmah Kizito, a crypto trader and fashionista, expressed his outrage and concern over the incident.
“I’m still processing what happened to my brother and friend Festo Ivaibi,” he said. “A man who has poured his energy into educating and empowering others through crypto and Web3, abducted at gunpoint by thieves posing as UPDF operatives and in uniform, threatened, and forced to surrender his crypto wallets under duress. This isn’t just about money. It’s about the risks innovators face in unregulated environments. We need protection. We need regulation. We need to make sure this never happens again.”
Kasim Mpanga, a crypto enthusiast, also voiced his support for Ivaibi on X, stating, “We are heartbroken to hear about the horrific ordeal you endured. No one should face such a violation, and our hearts ache for you and your family. We keep you in our prayers as you navigate this pain. Your resilience and commitment to a secure crypto ecosystem inspire us all. Stay strong.”
The incident has sparked renewed calls for stricter regulation of Uganda’s cryptocurrency sector, which has seen a surge in scams and fraudulent schemes in recent years.
Mitroplus Labs, a free learning hub for crypto education across Africa, reiterated its commitment to fostering a secure and transparent crypto ecosystem despite the challenges posed by bad actors.
The company urged its community to tighten security protocols, practice safe wallet storage, and remain cautious about discussing assets publicly.
Police and security agencies have yet to comment publicly on the investigation.