The number of fraudulent online financial businesses scamming citizens continues to rise. Last year, a company named Super Free to Trade Ltd (STT) left many in financial ruin after luring them with promises of quick wealth.
BNR’s Director of Market Conduct Supervision, Nsabimana Gerard, revealed that the companies exploit digital financial trading, particularly cryptocurrency, to defraud individuals.
He identified four companies recently flagged by BNR and urged the public to stop investing in them, warning that they are scams.
"We have identified four such entities. One of them, Die Equipment, falsely claims to be an American-based company providing agricultural machinery, but in reality, it is a scam. It has no affiliation with the American firm it claims to represent," he stated.
"Pi Network operates an online cryptocurrency trading scheme that is not legally recognized. Dynace presents itself as a medical supply company, while FlexFunds is another fraudulent entity. All these companies are designed to defraud citizens."
Nsabimana stressed that these businesses operate outside Rwanda’s legal framework, meaning investors risk losing their money without legal protection.
"Many people have already lost money. For example, Billionaire Traders reportedly caused citizens to lose Rwf 10 billion."
BNR highlighted multiple risks associated with cryptoassets, including lack of legal protection, high susceptibility to fraud, extreme price volatility, and lack of transparency.
Until regulations are established, the bank warns that neither investors nor buyers of such digital assets will have any legal recourse.
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