Festo Ivaibi, founder of the cryptocurrency education hub Mitroplus Labs, was kidnapped at gunpoint on May 17 near his home in Kampala, Uganda. The attackers, armed and dressed in military uniforms, forced Ivaibi to transfer $500,000 worth of cryptocurrency from his digital wallets to theirs.
According to an official statement from Mitroplus’s Afro Token Project, the kidnappers falsely claimed to be security operatives from the Uganda People’s Defence Forces. They coerced Ivaibi into unlocking his crypto wallets and initiated unauthorized transactions. The attackers also forced the sale of Afro Token, a meme coin linked to Mitroplus Labs, resulting in further financial losses and a sharp decline in the token’s value.
Data from DEX Screener showed Afro Token’s market capitalization dropped by 16.7% after the incident, falling to $1.6 million from a $7.3 million valuation in December 2024.
Mitroplus Labs alleges this attack is part of a broader, coordinated pattern targeting crypto holders in Uganda. The firm claims at least 48 similar abduction attempts have been identified, often involving informants posing as traders, rogue law enforcement officers, and foreign nationals.
“These types of crimes, commonly known as ‘wrench attacks,’ involve physical threats against crypto holders to force them into transferring digital assets,” the Afro Token Project stated. “This is not just an attack on one person, it’s an attack on a growing vision.”
The rise in crypto-related kidnappings has alarmed investors and blockchain firms, who are now calling for stronger security measures and safeguards for crypto holders.
Authorities are investigating the incident, but many cases reportedly go unresolved due to the influence and reach of the perpetrators’ networks.
As the frequency of these attacks increases, industry experts warn that anyone involved in cryptocurrency should be vigilant and take extra precautions to protect their digital assets.
