Ugandan Government Employee Admits Role in Crypto Abduction Involving Rogue Soldiers

An employee of the Ugandan National Identification and Registration Authority (NIRA) has confessed to orchestrating the abduction of Festo Ivaibi in May.

The Criminal Network and Its Methods

In a stunning development, an employee of the Ugandan National Identification and Registration Authority (NIRA), has confessed to orchestrating the abduction of Festo Ivaibi, the founder of a blockchain education entity, in May. However, rogue elements in the Ugandan military working with NIRA employee, Alex Mwogeza, ultimately carried out the attack that resulted in Ivaibi losing hundreds of thousands of dollars in crypto.

According to a statement released by Mitroplus Labs, Mwogeza is believed to have used his privileged access to NIRA’s data systems to retrieve Ivaibi’s sensitive personal and family information. Using the information, Mwogeza and his accomplices tracked Ivaibi’s movement before pouncing on May 17.

Meanwhile, officials with the Chieftaincy of Military Intelligence (CMI) have since revealed that Mwogeza collaborated with Batambuze Isaac, a well-known cryptocurrency broker, to recruit seven Uganda People’s Defence Forces (UPDF) soldiers to execute the abduction. All individuals involved have since been apprehended.

The officials believe the abduction, which occurred amid a string of violent home invasions and sometimes the torture of wealthy founders of cryptocurrency companies, undermined public trust in security institutions.

Call for Regulation and Collaboration

Investigations carried by Ugandan law enforcement revealed that the perpetrators withdrew approximately $117,000 and swapped an additional $18,000 worth of Afro tokens. These funds were traced to wallet addresses at major cryptocurrency exchanges including Binance, Bybit, and Hotbit. Of the three exchanges, only Binance responded to official requests for assistance with the know your customer (KYC) information of the perpetrators.

Meanwhile, Batambuze claimed during interrogation that his gang could only access wallets lacking multi-signature authentication. He added that the remaining funds were likely still on mobile devices he discarded in a pit latrine soon after the criminal act. Ugandan authorities are now said to be working to retrieve the devices in hopes of recovering the remaining assets.

The operation has drawn praise for the coordinated efforts of the Uganda Police Force, Criminal Investigations Directorate (CID), Uganda Revenue Authority, Counter-Terrorism Intelligence, and especially the CMI for their swift action in exposing the criminal network and advancing justice.

Remarking on the incident, Mitroplus Labs said the case is testament that Uganda needs a framework under which digital assets are regulated.

“This incident highlights the urgent need for stakeholder engagement and clear policy frameworks for blockchain and cryptocurrency technologies on the African continent. While the technology is here to stay, the risks of unregulated or misunderstood use are too great to ignore. We urge policymakers, regulators, innovators, and enforcers to collaborate on building a secure, progressive environment that fosters innovation while deterring criminal misuse,” Mitroplus Labs argued in the statement.

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