A shocking abduction in Uganda has drawn fresh attention to the growing threat of crypto-targeted crimes. Festo Ivaibi, founder of blockchain education startup Mitroplus Labs, was kidnapped at gunpoint on May 17 near his residence in Kampala. The attackers, impersonating officers of the Uganda People’s Defence Forces (UPDF), forced Ivaibi to transfer $500,000 in cryptocurrency from multiple wallets.
Mitroplus Labs confirmed in an official statement that the assailants wore military uniforms and carried weapons to create the illusion of a government operation. Ivaibi was coerced into unlocking his crypto wallets, including those linked to Afro Token—a meme coin developed under the Afro Token Project managed by the company.
According to the firm, the attackers also sold off portions of Afro Token during the incident, raising serious concerns about forced asset manipulation under duress.
“This is not just an attack on one person; it’s an attack on a growing vision,” the project stated.
The attack has sparked alarm within Uganda’s crypto community, where law enforcement struggles with limited regulatory clarity and rising digital asset crimes. It highlights an escalating global trend in which criminals target crypto holders physically, as privacy features and cold wallets make online hacks more difficult.
Abduction Tied to Coordinated Crypto Crime Network
The attack on Mitroplus Labs founder Festo Ivaibi appears to be more than a standalone incident. The firm alleges that the abduction is linked to a broader criminal network targeting crypto entrepreneurs.
In a public statement, Mitroplus said some of the stolen funds may have been funneled into a Binance wallet, potentially complicating efforts to trace and recover the assets. Afro Token has since plummeted over 16% in value, with its market cap now sitting around $1.6 million—down sharply from its $7.3 million peak in December 2024.
Mitroplus claims to have uncovered a pattern: at least 48 similar attacks across Uganda, allegedly involving fake traders, corrupt security personnel, and two Chinese nationals believed to be linked to prior schemes. According to the firm, many of these incidents have been ignored or underreported due to influence from individuals within the network.
The company is now calling for stronger protections for crypto entrepreneurs and increased scrutiny of systemic criminal activity in the space.
Global Rise in Wrench Attacks Alarms Crypto Community
The Ivaibi abduction is the latest in a disturbing global rise in “wrench attacks”—a term for physical coercion aimed at forcing crypto transfers.
This year alone, several high-profile incidents have rocked the crypto industry. David Balland, co-founder of Ledger, was kidnapped and severely beaten in a violent extortion attempt. In another case, a broker broke both ankles fleeing captors. More recently, European police rescued the father of a crypto entrepreneur from a gang demanding nearly $8 million in ransom.
As digital assets grow in mainstream appeal, physical threats have become one of the most concerning risks for crypto holders—particularly those known to self-custody large amounts or operate public-facing Web3 ventures.
Michael Pearl, VP of Strategy at CyVers, a blockchain security firm, warns that these crimes are difficult to intercept once attackers gain physical access.
“Unlike hacks, these are executed under direct threat, with victims forced to disclose seed phrases or authorize transfers in real time,” he said.
Pearl recommends layered defenses, including multi-factor authentication, withdrawal delay features, and device-triggered alert systems. Meanwhile, privacy experts advise against publicly linking identities to wallet holdings and urge the use of VPNs to minimize digital exposure.
Quick Facts
- Festo Ivaibi, founder of Mitroplus Labs, was abducted on May 17 in Kampala.
- He was forced to transfer $500K in crypto, including Afro Token holdings.
- Mitroplus Labs alleges the attack is part of a larger criminal network.
- Afro Token dropped over 16% following the incident, with market cap at $1.6M.
- The case reflects a growing trend of physical attacks on crypto holders worldwide.
