A Kenyan cryptocurrency called NuruCoin, which gained a lot of traction in the first part of 2018, has reportedly shut down after raising KES 2.7 billion, or roughly $27 million, from investors.

A local daily claims that NuruCoin used a multi-level marketing strategy and was effectively promoted to people living in the Kenyan towns of Murang’a, Kitengela, Machakos, Nyeri, Meru, Nakuru, and Kericho.

It appears that ChurchBlaze, the company that created NuruCoin and the ICO, had over 11,000 investors take part in the offerings.

Months after they put up their money, a number of investors have disclosed to the daily how much they invested and the broken promise of returns.

All of ChurchBlaze’s locations, including their main office located in a suburb of Nairobi, are now closed.

There are still unanswered questions about what transpired and why the regulators refrained from participating in such a significant fundraising effort. Only after getting approval from the Capital Markets Authority (CMA) may such substantial funds be raised through the sale of shares on the Nairobi Stock Exchange.

The blockchain associations of East Africa have released a joint press statement to inform and caution potential investors to be on the lookout for fraudulent crypto investments, given the growing concerns surrounding cryptocurrency scams and ponzi schemes.