Despite two major cities in eastern Democratic Republic of Congo falling under the control of the M23 militia, some residents are boasting about their newfound wealth, raked in through cryptocurrency trading.
Crypto trading is being pitched as a magical fix for the economic crisis crippling the region. Banks have been shuttered by Kinshasa authorities to prevent financing the Rwanda-backed rebels, but this crypto craze often masks highly sophisticated scams that exploit an already battered population.
“With just $1,000 invested, I pocket between $672 and $700 monthly,” gushed John, a civil servant and artist, as he sat under a parasol on the infamous “beer avenue” in Bukavu, the capital of South Kivu.
“My first deposit was $800. After 30 days, I pulled out $480 and kept $1,000 in my account. Now, I easily hit $2,000 or $4,000, which helps me push forward my businesses, my projects, and clear my debts,” he said while sipping an imported beer—the only option since the local brewery closed down due to the fighting.
The single requirement, he explained, is to log in multiple times a day and recruit other people to join the shady online trading platform, which falsely claims to be a U.S.-based foundation.
The entire operation functions like a pyramid scheme, where returns depend solely on signing up new members and risking the total loss of its investors’ money.
In this Central African nation, ranked among the world’s poorest and devastated by decades of conflict, online scams have found “perfect conditions,” according to Justin Murhula, a digital security instructor in Bukavu. “Many people, seeking fast profits given their current vulnerable state, are simply swept away,” he said.
🚫 Zero Accountability, Zero Protection
Kinshasa signed a pact with the M23 for a permanent truce in Doha in July, following a U.S.-brokered deal between the DRC and Rwanda in June aimed at ending the conflict. However, these efforts have failed to halt the violence, much less reopen banks or provide economic relief.
The M23, which has seized control of the two main eastern cities, Goma and Bukavu, has imposed various levies to fund its shadow administration while urging residents to use mobile payment systems.
And with police stations and courts deserted since the armed group’s arrival, there is no official body or authority to fight scams in the region.
From phishing attacks to fake messages from friends or international aid groups, online scams have skyrocketed in the DRC and its neighbours even before the M23 reemerged, with several Ponzi schemes leading to mass bankruptcies.
Back under the parasols in Bukavu, crypto enthusiast John wasn’t convincing all his mates with his success story.
“In 2018, I got burned by scammers. The pitch was to deposit an amount of $200 or more and earn monthly interest through an online system where you could watch it grow,” said Justin, an entrepreneur who refused to give his full name.
He lost everything a month later, he recalled. “The system just went dark.”
Bukavu lawyer Pascal Mupenda shared with AFP that he is constantly approached by similar platforms. “They managed to rope in three of my colleagues,” he sighed.
In a country where nearly three-quarters of the population survives on less than $2 a day, for some, the chance to gamble outweighs the dangers.
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