tl;dr
Festo Ivaibi, founder of Mitroplus Labs in Uganda, was abducted at gunpoint on May 17, 2025, by individuals posing as Uganda People's Defence Forces operatives. They forced him to transfer $500,000 in cryptocurrency to their wallets and sell part of the Afro Token meme coin. This incident is part of...
Festo Ivaibi, founder of Mitroplus Labs in Uganda, was abducted at gunpoint on May 17, 2025, by attackers posing as Uganda People's Defence Forces operatives. Under duress, he was forced to transfer $500,000 in cryptocurrency to their wallets and to sell a portion of the Afro Token meme coin.
This incident exemplifies a rising trend known as "wrench attacks," where crypto holders are physically threatened to reveal private keys or authorize transactions. Mitroplus Labs reports at least 48 similar attacks, often involving informants, rogue officers, and foreign nationals, with many cases dismissed due to criminal influence within the system.
The value of Afro Token dropped approximately 16.7% following the attack, illustrating the significant financial impact such criminal acts can have on crypto projects. Afro Token was created on SunPump, a meme coin platform on the Tron blockchain, and some coerced transfers involved other cryptocurrencies sent to Binance wallets.
Security experts recommend implementing multi-factor authentication, monitoring unusual transaction patterns, and using VPNs to protect against physical coercion and hacking. Michael Pearl of CyVers highlights that multi-factor authentication and transaction alerts could make forced transfers more difficult without detection. Harry Halpin from Nym adds that growing income disparities combined with increased demands for user transparency expose crypto holders to greater risks.
This wave of attacks underscores the urgent need for enhanced security measures and awareness within the crypto community. As these threats evolve, investors and project founders alike must consider both digital and physical safeguards to protect their assets in an increasingly hostile environment.