- Crypto founder Festo Ivaibi was abducted in Uganda and forced to transfer $500,000 in cryptocurrency.
- Attackers wore military uniforms, claimed to be security officers, and targeted Ivaibi near his home in Kampala.
- Mitroplus Labs says there have been over 48 similar crypto attacks in Uganda, with many going unreported.
- Experts warn that physical attacks on crypto holders, called “wrench attacks,” are becoming more common worldwide.
- Security specialists recommend stronger physical and digital security measures to protect crypto assets.
On May 17, Festo Ivaibi, founder of Mitroplus Labs, was abducted outside his residence in Kampala, Uganda. Armed attackers forced him to transfer approximately $500,000 in cryptocurrency to their own wallet.
According to a formal statement from Mitroplus Labs, the perpetrators wore military-style uniforms and presented themselves as members of the Uganda People’s Defence Forces. The group demanded Ivaibi unlock his crypto wallets and also compelled him to sell a portion of Afro Token, a meme coin linked to the Mitroplus Labs project.
The firm reported that the incident is one of more than 48 similar physical attacks against crypto holders in Uganda, which often go unreported. “This is not just an attack on one person, it’s an attack on a growing vision,” the project said. The attackers allegedly included informants posing as crypto traders, rogue law enforcement, and two Chinese nationals.
Afro Token was created on the SunPump platform using the Tron blockchain. After the incident, the value of the token dropped 16.7%, leaving its market cap at about $1.6 million, which is significantly down from $7.3 million recorded at the end of last year. Parts of the stolen funds were reportedly sent to a Binance wallet, but the exact cryptocurrencies coerced in the transfers are unclear.
“Wrench attacks”—where physical threats force individuals to reveal passwords or approve crypto transfers—are reportedly increasing. Recent global cases range from ransom kidnappings to violent assaults. “The challenge…lies in how they are executed physically ‘to reveal private keys or authorize transactions under duress,'” said Michael Pearl, a security executive at CyVers.
Experts recommend multi-factor authentication, monitoring unusual transaction patterns, and using virtual private networks (VPNs) as protective measures. Harry Halpin of Nym pointed out that increased calls for crypto user transparency could expose owners to more risk through data leaks.
Decrypt has contacted Mitroplus Labs and Ugandan authorities for additional information and will provide updates as they respond.
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