Ugandan authorities arrested Ronald Muramuzi on cyber fraud charges, identifying him as a top affiliate for the TelexFree Ponzi scheme. The arrest marks one of the first outside the United States directly connected to TelexFree, which US regulators shut down last month.

Muramuzi's online scamming activities began in 2012, operating under various aliases including Morgan Mugisha, Bob Mugisha, Muramuzi Ronald Kato, and Kato Ronald. He recruited approximately 600 investors into multiple Ponzi schemes, with TelexFree being a significant one. Muramuzi also promoted Tesco Trader, which offered 2-4% daily returns and collapsed recently. He included AdFast, appearing to be a TelexFree reload operation, and drew investors into Bank Electro, promising 1-5% returns on deposits. Other schemes were the collapsed United HYIP League and MassiveAd, which accepted $100 to $10,000 investments for 10-day payouts.

Ugandan officials estimate Muramuzi's total illicit gains from these schemes reached 4 billion Ugandan Shillings, equivalent to $2.37 million USD. The specific amount attributed to TelexFree was not detailed. Ugandan news outlet UGO dubbed Muramuzi "the richest youth in the country" due to his stolen fortune. He reportedly spent these funds on a nightclub, a house, two rental properties, and a local newspaper outlet. The nightclub was sold following his arrest. He also reportedly purchased a local newspaper outlet, a platform he may have used to promote his various schemes.

Despite neighboring Rwanda banning TelexFree, Ugandan authorities had been reluctant to investigate until Muramuzi's arrest. This action came shortly after US regulators closed TelexFree. Earlier, in March, Richard Kabonero, Uganda's Ambassador to Rwanda, publicly urged his government to investigate TelexFree's operations. Elsewhere, no arrests have been publicly confirmed in Brazil, considered a central hub for TelexFree, nor in the Dominican Republic, despite initial reports of detentions.

No information has emerged regarding the location of Muramuzi's millions or whether his recruited investors will recover any of their losses.