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Cryptocurrency Enthusiasts in Africa Need to Understand the Industry Before Investing

Cryptocurrency enthusiasts in africa need to understand the industry before investing

Cryptocurrency Enthusiasts in Africa Need to Understand the Industry Before Investing

More and more investors in Africa are hopping on the bitcoin bandwagon. However, they need to ensure that they are aware of what decentralization actually means when it comes to investing. 


Africa is a continent rich in diversity, natural resources, beautiful landscapes, and common occurrences of political turmoil.

Citizens may look to cryptocurrencies to escape these socioeconomic woes, or perhaps they simply want to be a part of the digital revolution. Whatever the reason, virtual currencies continue to enjoy a high level of interest and trade in Africa.

Research to Understand

However, according to IT Web Africa, Richard de Sousa believes potential investors need to make sure that they understand the technology behind these digital currencies. De Sousa, a partner at South African exchange, AltcoinTrader, explained:

The key thing here is personal responsibility and counterbility, personal responsibility becoming the new counter culture. The cryptocurrency space is not for people who are reliant on governments, or those expecting to be protected by government and consumer protection plans. It is more for free thinkers, people that understand the technology.

More and more investors in africa are hopping on the bitcoin bandwagon. However, they need to ensure that they are aware of what decentralization actually means when it comes to investing.  

Speaking of which, de Sousa believes that authorities are doing the right thing by cautioning potential and existing investors about the cryptocurrency industry:

We encourage the authorities to give the warnings as they need to, because the masses that blindly expect to be protected by government need to get warnings.

Crypto Scams in Africa

A possible rude awakening for some investors was the Ponzi scheme that happened earlier this year in South Africa. Nearly 30,000 investors were allegedly scammed out of millions of dollars. The country’s top law enforcement agency is still searching for scheme’s elusive rumored mastermind.

Nigeria is another African country that saw some investors lose out when they were scammed by a dodgy cryptocurrency company.

A possible rude awakening for some investors was the ponzi scheme that happened earlier this year in south africa. Nearly 30,000 investors were allegedly scammed out of millions of dollars. The country's top law enforcement agency is still searching for scheme's elusive rumored mastermind.

Responsibility to Protect Yourself

Rafiq Phillips, found of blockchain-based jfGi, agrees that a core part of cryptocurrency investing is research. He added:

There is more fear, uncertainty, and doubt about cryptocurrencies in the market than anything else. Doing your own research is vital. I believe the financial regulators’ warnings are both positive and negative, there are many illegal businesses and scams posing as cryptocurrencies and the paradigm shift in economics and finance [that] bitcoin and crypto brings forth disrupts the control financial regulators have had on the system. The positive is that doing your own research into bitcoin and crypto will improve your own financial know-how into not only cryptocurrencies but finance in general.

Even though bitcoin is nearly a decade old, it arguably only started gaining public traction just last year. While it’s great that so many people want to be a part of the future of finance, these same people need to know what that future entails and how they can independently protect themselves in this largely unregulated industry. This obviously applies to every potential investor and not just those in Africa.

Do you think that those new to the cryptocurrency industry are doing their due diligence before investing? Let us know in the comments below!


Images Courtesy of Shutterstock.

Published at Sat, 28 Jul 2018 11:00:34 +0000

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How a Bitcoin Whitehat Hacker Helped the FBI Catch a Murderer

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An ethical hacker breached the database of a phony darknet website offering hitman services and leaked the data. The information from the data dump helped the FBI in their investigation of a man who murdered his wife.

In November 2016, Stephen Carl Allwine, 47, of Cottage Grove, Minnesota, killed his wife in “one of the most bizarre cases ever seen,” police officers reported. The husband tried to mask the murder as a suicide, including putting a 9 mm pistol next to Amy Allwine’s elbow. However, detectives arriving on the scene identified the case as murder and collected evidence — mostly electronic devices, such as computers — belonging to Mr. Allwine. Later on, in January, investigators arrested and charged Mr. Allwine with second-degree murder based on the forensic evaluation of the confiscated electronic equipment.

In May 2016, a hacker called “bRpsd” breached the database of a controversial hitman service offered on a darknet website. The service, “Besa Mafia,” offered a link between customers and hitmen, who could register on the site anonymously. The price for a murder ranged between $5,000 and $200,000, but clients seeking to avoid fatalities could also hire a contractor to beat up a victim for $500 or set somebody’s car on fire for $1,000.

The hacker uploaded the data dump to a public internet website. The leaked files contained user accounts, email addresses, personal messages between the Besa Mafia admin and its customers, “hit” orders and a folder named “victims,” providing additional information on the targets.

The breach highlighted the fake nature of the website, which operated only to collect money from the customers. Chris Monteiro, an independent researcher who also hacked into the site, stated the owner or owners of Besa Mafia had made at least 50 bitcoins ($127,500 based on the current value of the cryptocurrency) from the scam operation.

According to a message posted by a Besa Mafia administrator and uncovered in the dump, “[T]his website is to scam criminals of their money. We report them for 2 reasons: to stop murder, this is moral and right; to avoid being charged with conspiracy to murder or association to murder, if we get caught.”

The leak of the Besa Mafia database helped the police investigating the murder of Mrs. Allwine. As the officers analyzed her husband’s devices, they discovered the suspect had accessed the dark web as early as 2014. Furthermore, investigators identified the pseudonym Mr. Allwine used on the darknet, “dogdaygod,” which was also linked to his email, “dogdaygod@hmamail.com,” in some cases. Detectives found bitcoin addresses in the conversations between Besa Mafia and Mr. Allwine, which linked the husband directly to the “dogdaygod” pseudonym, providing authorities with necessary evidence for the case.

Eventually, law enforcement agents analyzed the data dump bRpsd leaked and discovered Mr. Allwine’s email in the list. In addition, investigators found messages between the suspect and the Besa Mafia admin. According to a criminal complaint, Mr. Allwine paid between $10,000 to $15,000 to the supposed hitman service to kill his wife. The complaint detailed how Mr. Allwine had decided to have the hitman shoot Mrs. Allwine at close range and burn down the house afterward.

However, once the funds were transferred, the Besa Mafia communicator told Mr. Allwine that “local police [have] stopped the hitman [from] driving a stolen vehicle and taken [him] to jail prior to the hit,” thus rendering him unable to complete his “service.” The complaint cited Sergeant McAlister who reported that during that time, “no one was apprehended in Minnesota and western Wisconsin in a stolen vehicle and possession of a gun.”

It is likely that the ethical hacker’s data breach had an impact on Mr. Allwine’s case; on March 24, 2017, the Washington County District Court charged him with first-degree murder. In addition, officers have gathered more evidence in the case — a drug called scopolamine was discovered at 45 times higher than the recommended level in Mrs. Allwine’s body. Investigators subsequently discovered that her husband had also ordered the substance on the dark web.

The post How a Bitcoin Whitehat Hacker Helped the FBI Catch a Murderer appeared first on Bitcoin Magazine.