Police probe alleged ‘Hut 8’ online investment fraud as investors face withdrawal losses
A screenshot of the alleged Hut8 platform. PHOTO/POLICE
What you need to know:
- Preliminary information indicates that individuals were allegedly lured through social media platforms to deposit money with the promise of returns.
The Uganda Police Force, in collaboration with regulatory and financial sector agencies, has launched investigations into an online investment platform operating under the name Hut 8, following reports that several investors are unable to withdraw their money.
The development follows an outcry early this month on social media, where multiple victims alleged that their account funds were locked after they were lured into depositing money with promises of high investment returns.
In a statement posted on the official Police X handle, Uganda Police Force Spokesperson, ACP Rusoke Kituuma, confirmed that authorities have taken note of the platform’s suspicious operations in the country, despite receiving no formal complaints from the public yet.
"The Uganda Police Force, working together with relevant regulatory and financial-sector agencies, is ready to receive complaints and any available information to establish the full circumstances surrounding these activities, identify the individuals or entities involved, and take appropriate action in accordance with the law," ACP Rusoke stated.
Legitimate firm disowns platform
The police spokesperson clarified that the legitimate US-based digital infrastructure and Bitcoin mining firm, Hut 8 Corporation, has officially disassociated itself from the Ugandan investment solicitations.
"While no formal complaints have yet been received by the Police, we wish to clarify that the legitimate Hut 8 Corporation has publicly disassociated itself from the alleged investment solicitations in Uganda," ACP Rusoke noted.
The real Hut 8 Corporation clarified on its official X account that it maintains no authorized representatives, local operations, or investment schemes soliciting funds in Uganda.
Preliminary police investigations reveal that victims were primarily recruited via social media platforms, where fraudsters promised high yields on cash deposits.
Call to action and fraud warning
Police have urged affected members of the public to formally report their cases to the nearest police station to aid the ongoing probe.
"Victims should provide any available evidence, including payment records, mobile-money and bank transaction references, telephone numbers, social-media accounts, online links, screenshots, chat messages, and details of individuals who recruited or promoted the platform," ACP Rusoke advised.
Police further warned victims against paying extra cash to fraudsters promising to unlock their locked accounts or facilitate withdrawals.
"Victims should also exercise caution when approached by individuals claiming they can recover lost funds in exchange for an upfront payment, as this may constitute another form of fraud," police cautioned.
History of online investment scams
The Hut 8 investigation comes amidst growing concern over digital financial scams in the country. Thousands of Ugandans have previously lost millions of shillings to similar fraudulent online schemes, including BLQ, YEPBIT, and Chicken Chicken, which operated on similar pyramid structures before vanishing with public funds.
