A Mauritius-based blockchain expert has helped uncovered a possible crypto scam operating in the country after he filed a formal complaint with the country’s financial regulator, the Financial Services Commission, which in turn issued a scam alert.
Horizon Africa’s Suyash Sumaroo said his complaint against Cloud Token Wallet App, which claims to enable Mauritians who invest in cryptocurrencies make up to 15% returns per month based on a proprietary trading algorithm called ‘Jarvis AI’, was his way of thwarting a potential crypto scam that “could have real effects on people, like them losing real money”.
He said: “The crypto space already has a lot of bad players trying to misuse the technology to swindle money and we don’t need any more especially in Mauritius, where crypto adoption is still low. People need to trust the blockchain technology and crypto in general. The less bad players we have, the better.”
Mauritius’ small size and its seemingly growing tech space may have made Sumaroo’s intervention effort easier to launch unlike in bigger countries like Nigeria where curtailing the spread of such an attempt could have been harder to nip.
But he believes his technical background influenced his action and said there is still a lack of information sharing in Mauritius’ tech space – especially as far as blockchain and cryptocurrencies is concerned.
“My tech background in the blockchain technology helped me easily spot this scam, but it could have ended really badly if it was allowed to continue for a few more weeks,” Sumaroo says, maintaining that he will always be on the lookout for any other cases in Mauritius.
Though no arrests have been made, a Facebook group dedicated to the Indian Ocean and Mauritius app has been closed.
Sumaroo suggests that individuals who are curious about any related technology or “claims that seem too good to be true from crypto projects” should first consult with experts to make sure.