Ugandan authorities have detained a suspect linked to the high-profile abduction of Festo Valbi, founder of Mitroplus Labs and creator of Afro Token.
The authorities confirmed the arrest of Phineous Biira, a key suspect in the case, after forensic experts traced stolen cryptocurrency funds directly to her digital wallets. Valbi was abducted on May 17 by armed assailants posing as security operatives, who forced him to transfer $500,000 from his Binance and other digital wallets before releasing him, as reported by Techpression.
Mitroplus Labs commended law enforcement authorities.
The organisation, in a statement, praised law enforcement’s swift action, stating, “We commend the Uganda Police for the professional, impartial, and firm manner in which they have continued to handle this case. Utilising blockchain analytics, we successfully followed the movement of the stolen funds, leading directly to the suspect’s digital wallets.”
According to the company, the arrest took an unexpected turn when Major Charles Konyang Lepera of the Uganda People’s Defence Forces (UPDF) arrived at the scene. He identified himself as a presidential aide and a relative of the suspect, raising eyebrows about possible interference.
Meanwhile, the suspect, Biira, resisted arrest and refused to explain how the stolen cryptocurrency ended up in her possession or share any transaction details. Authorities also revealed that she has a history of similar crimes, including a 2021 case heard by Magistrate Odwori Ponsiano Romans.
Mitroplus Labs noted concerns over a broader criminal network, saying, “At least 48 cases like this have happened in Uganda and have been dismissed at the influence of their ring. Previous victims have shared heartbreaking stories and images of perpetrators using vehicles with UPDF plates and men in uniform.”
While the abduction triggered panic selling of Afro Token, causing a temporary 16 percent drop, the cryptocurrency has since stabilized. Mitroplus Labs reassured investors: “Only $18,000 worth of Afro Token was stolen, and the market impact was minimal. Afro Token remains strong among the top 10 memecoins by market capitalization on the Sunpump network. Afro is all of us—our culture, beliefs, and community building together.”
The company further urged the crypto community to enhance security measures: “Tighten your security protocols, both physical and digital. Practice safe wallet storage, enable two-factor authentication (2FA), and be cautious discussing assets online.”
Calls for stronger crypto regulations in Africa
The incident has amplified demands for clearer policies to protect innovators in Africa’s rapidly growing crypto sector. The company emphasised: “This was not just an attack on one man—it was an attack on innovation, education, and the future of Africa’s digital economy. We urgently need stronger protection for innovators and clear regulation for the crypto space. Africa cannot afford to lose its builders to fear.”
With crypto-related crimes surging across the continent—including a 250 percent increase in Tanzania and a 59 percent rise in Nigerian IT fraud—the case highlights the need for coordinated action among governments, law enforcement, and the blockchain industry.