In a harrowing incident that underscores the vulnerabilities faced by cryptocurrency entrepreneurs, Festo Ivaibi, founder of Uganda-based blockchain education platform Mitroplus Labs, was abducted on May 17, 2025, near his residence on Bunamwaya Road in Kampala. The assailants, reportedly dressed in military uniforms and posing as Uganda People’s Defence Forces (UPDF) operatives, forcibly compelled Ivaibi to transfer approximately $500,000 in cryptocurrency from his digital wallets, including those on Binance, to accounts controlled by the kidnappers.
Mitroplus Labs disclosed that the attackers also coerced Ivaibi into selling a portion of Afro Token, a meme coin launched by the company in 2024 on the Tron blockchain via the SunPump platform. This forced sale led to a temporary dip in the token’s market value, though the company assured stakeholders that community funds remained secure and unaffected.
The incident is part of a disturbing trend of “wrench attacks,” where individuals are physically threatened to surrender access to their digital assets. Mitroplus Labs reported that at least 48 similar attacks have occurred in Uganda, many of which remain unreported or unresolved due to the country’s lack of formal cryptocurrency regulation. Ivaibi, a registered crypto trader with the Uganda Revenue Authority, emphasized the challenges in seeking legal recourse, noting that authorities often dismiss such cases as individual risks associated with unregulated assets.
The company has called for increased awareness and protective measures for crypto entrepreneurs, highlighting the need for regulatory frameworks that can offer both legitimacy and security to the burgeoning digital asset industry in Uganda.
As investigations continue, this incident serves as a stark reminder of the physical risks associated with digital wealth and the pressing need for comprehensive security protocols in the cryptocurrency sector.
