In a recent operation in Windhoek, Namibia, local law enforcement arrested approximately 50 young Namibians suspected of involvement in an international cryptocurrency investment scam. Reports suggest that these individuals collaborated with the police, assisting in the ongoing investigation that also involves 10 Chinese nationals.
Elias Mutota, Namibian police’s deputy inspector general for operations, disclosed that among the 88 young Namibians involved, 50 were students initially promised marketing jobs. Instead, they fell victim to trafficking in Windhoek. The suspects, foreign nationals, trained these Namibian students to create fake profiles on social media platforms such as Facebook and Instagram. The scammers used these profiles to lure unsuspecting U.S. citizens into their scheme. Initially, the fraudsters built trust with their victims and then introduced them to cryptocurrency investments, promising quick profits. This enticement led the victims to invest more funds.
In a carefully planned sting operation, the police raided six houses in Windhoek’s Auasblick, Kleine Kuppe, and Klein Windhoek neighborhoods. They also searched offices in the Shapumba Towers building in the city. The fraudulent investment scheme they were running is commonly known as a ‘pig butchering’ cryptocurrency scam. This term metaphorically refers to schemes where individuals are deceived, similar to fattening a pig before slaughter.
These fraudsters establish prolonged online relationships with their victims, gradually convincing them to invest in bogus cryptocurrency trading platforms. In reality, the money sent by victims thinking they are investing is redirected to cryptocurrency addresses controlled by the scammers and their collaborators.
A group of 14 individuals, including 10 Chinese nationals, who were apprehended in early October 2023, appeared in the Windhoek Magistrate’s Court facing a total of 203 charges. The charges against them include 98 counts of human trafficking, 98 charges related to using the services of trafficking victims, one count of fraud involving approximately $465,405 (equivalent to around N$9 million), as well as accusations of money laundering, racketeering, and tax evasion.
Magistrate Dawid Mukuyu adjourned the case until February 15, 2024, to allow for further investigations. During this period, the 14 accused individuals will remain in custody.