The Drug Enforcement Commission (DEC) in Zambia have arrested three individual directors of the cryptocurrency firm Heritage Coin Resources Limited on the charge of laundering approximately 28,000,000 kwachas, the country’s official currency. This is equivalent to more than $2.3 million in USD.

So, Who’s in Trouble, Here?

In a statement released on November 2, 2018, DEC assistant public relations officer Chibu Mwansa Tembo explained that the group had been garnering funds under false pretenses and are believed to have participated in several other financial crimes, such as operating a financial services firm without the proper license.

The persons charged include 35-year-old Hilda Agnes Raubenheimer of Salama Park; 29-year-old Orient Rio of Ibex Hill, and 40-year-old Tapiwa Chirwa, who served as the firm’s primary managing director. Tembo commented that the three had been jointly charged for:

…Providing banking business, financial business or financial services without a license, conducting or participating in a money circulation scheme, obtaining money by false pretenses and money laundering contrary to the laws of Zambia.

The Dates and Details

It is estimated that between the dates of June 1, 2018 and October 15, 2018, the three individuals worked with financial industry leaders (unnamed in the statement) to provide monetary services to the public by collecting deposits from customers which were disguised as partnership fees.

The money was then used in a financial circulation scheme which involved approximately 28,346,800 kwachas under the false notion that Heritage Coin Resources Limited was placing their customers’ money into valid investments.

A Few More Charges

In addition, the firm allegedly claimed it would trade cryptocurrencies online for its customers when this never appeared part of the organization’s goals. All three individuals are presently on police bond and are due to appear in a Zambian court before the end of the year as the DEC continues its investigation of the company.

DEC deputy public relations officer Kamufinsa Manchishi later exclaimed:

The Commission wishes to warn members of the pubic to always be cautious when dealing with financial institutions owing to the increase in financial crimes, as well as companies promising unusually high returns on deposits… The Commission, together with the Bank of Zambia, is currently investigating [Heritage Coin Resources Limited] for activities contrary to the Prohibition and Prevention of Money Laundering, as well as the Banking and Financial Services Acts respectively.

Do you believe this is a misunderstanding, or are the three individuals in question guilty? Post your comments below!

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