Another crypto founder abducted in Uganda, forced to send $500K crypto at gunpoint

In Uganda, a crypto founder was taken hostage,  held at gunpoint, and told to send crypto worth $500,000 to his attackers. This is the latest attempt at kidnapping in the wave of crypto whale kidnappings. 

The founder of Mitroplus Labs, Festo Ivaibi, was kidnapped on May 17 near his home on Bunamwaya Road in Kampala, Uganda. 

According to Mitroplus’s Afro Token Project statement, the attackers were armed and dressed in military uniforms. They said they were “security operatives” of the Uganda People’s Defence Forces (UPDF).

CRYPTO ABDUCTION IN UGANDA.

On Saturday, May 17th 2025, our founder @IvaibiFesto was abducted by individuals posing as security agents(@MODVA_UPDF) and forced under duress, to release his crypto assets. We thank God he is now safe, and all systems have been secured.

This is… pic.twitter.com/ipZkrwTv95

— Afro Token (@AfroTokenSUN) May 19, 2025

Mitroplus Labs described the incident as more than just a personal attack. They said, “What happened to our founder was not just an attack on one man, it was an attack on innovation, on education, and on the future of Africa’s digital economy.”

Two Chinese citizens identified among the attackers

Following the incident, Uganda’s revenue agency reportedly granted Ivaibi access to its police command center. This allowed him to review street camera footage in hopes of advancing the investigation. 

“Police have dismissed these cases, citing unregulated cryptocurrency and individual risk. However, as Mitroplus Labs, we’ve engaged with the Uganda Revenue Authority (URA) on crypto taxation and participated in knowledge-sharing sessions on blockchain, AI, and cryptocurrencies. I’m registered as a cryptocurrency trader with the Revenue Authority, have filed tax returns, and faced penalties for late filings,” Ivaibi said.

Mitroplus Labs said the attack is part of a coordinated pattern involving spies pretending to be crypto traders, law enforcement officers, and two Chinese citizens. The company also said that at least 48 similar attacks have been identified, with many cases being dismissed.

The targeting of an African crypto entrepreneur comes just days after a failed attempt to abduct the daughter of the CEO of a crypto exchange in Paris, France. Before that, several crypto influencers and individuals known to hold millions of dollars in crypto were also targeted and lost funds to criminal gangs seemingly operating in France.

The latest event finally pushed the French government to say it would take steps to protect crypto workers, their families, and the whole industry.

In addition, David Balland, co-founder of the hardware wallet company Ledger, was kidnapped and cut up as part of a ransom demand earlier this year. A crypto broker broke both ankles in February while trying to get away from his kidnappers.

This month, the father of a crypto entrepreneur was freed by cops after being held hostage and asked for a crypto ransom of almost $8 million. Also, as reported by Cryptopolitan, a young woman and her toddler were attacked in Paris over crypto assets. 

Crypto leaders are again faced with a critical problem. According to Michael Pearl, vice president of strategy at a blockchain security firm, security methods such as multi-factor authentication could help make “forced transfers harder to execute without alerting others.” 

Afro Tokens drop after the attack

A share of the funds came from Afro Token, a meme coin Mitroplus Labs had issued on the Tron blockchain using the SunPump platform. The attackers sold some Afro Tokens during the attack, which caused the token price to drop for a short time. 

The statement did say, though, that no community funds were hacked or touched during the attack. Other funds were reportedly sent to a wallet on Binance.

On-chain data shows that the token’s value has dropped by about 16.7% since the attack day. Its market cap is now only about $1.6 million, down from over $7.3 million in December of last year.

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