DCI Arrests Two Cryptocurrency Fraudsters Who Conned Chinese National Ksh6.5 Million

Detectives from the Directorate of Criminal Investigations (DCI) on Friday, February 28 arrested two Kenyan fraudsters who had swindled a Chinese national of Ksh6.5 million.

According to DCI's statement, the offence was committed on February 20, 2025, at Rose Gardens in Kileleshwa. The two had masqueraded as cryptocurrency exchange experts, claiming that they were in a position to facilitate a cryptocurrency exchange.

Detailing the heist, DCI revealed that while converting the cash into cryptocurrency, one of the suspects made a dramatic exit with the money in a carrier bag, slipping through a backdoor.

"Left behind, the bewildered victim was still in the grip of the suspect, who posed as a trustworthy technician. With an air of confidence, he reassured the victim that everything was on track, claiming the transfer was successful and merely delayed due to pesky network issues," stated DCI in part.

A photo of various forms of cryptocurrency. /GET SUPPORT IT SERVICES

"But as minutes turned into hours, the victim’s unease grew into full-blown panic. Realizing he had been duped, he rushed to Kileleshwa Police Station to report the crime."

DCI added that upon receiving the report, detectives sprang into action, determined to bring the culprits to book.

Through forensic leads, the first suspect was arrested and arraigned before the Chief Magistrate’s Court Kibera on February 25, 2025, where he pleaded not guilty to the charges and was subsequently released on a Ksh1 million bail, with a surety of a similar amount.

"Leaving no stone unturned, detectives trailed and arrested the second suspect at the Hub Karen on February 27, 2025. Cornered and with no escape, he led detectives to his residence in KMA Estate, Lang’ata, where upon search, Ksh500,000 believed to be part of the stolen cash was recovered," added DCI.

The second suspect was arraigned on Friday before the Chief Magistrate’s Court Kibera, where he pleaded not guilty to the charges. He will be detained at the Industrial Area Prison pending the determination of bond terms on March 4, 2025.

This comes as Kenya, on September 28, 2023, advocated for stringent regulation of virtual currency as one of the most effective strategies in securing its jurisdiction as a secure financial hub from illicit financial flows.

Speaking during the 31^st Heads of National Drug Law Enforcement Agencies in Africa (HONLAF) in Abuja, Nigeria, Kenya’s head of delegation to the meeting Beverly Opwora who is also the Secretary for National Administration in the State Department of Internal Security observed that the country robustly pursued amendments to laws in appreciation of the dynamic money laundering risks related to predicate offences such as drug trafficking.

“On this, we have proactively amended The Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) that has lessened the reporting time of suspicious activity from 7 days to 2 days in cognizance of the need for timely interventions. It has also amended the cash transactions threshold to fit within the Financial Action Taskforce (FATF) standards - USD 10,000 (Ksh1.5 million) to USD 15,000 (Ksh2.2 million),” she said.

Earlier this year, Treasury Cabinet Secretary John Mbadi announced that efforts were in progress to legalize cryptocurrency trading, following the International Monetary Fund's (IMF) recommendation for Kenya to strengthen its regulatory framework to safeguard consumers and mitigate financial risks.

This development comes despite the country's existing ban on crypto trading, which has continued in underground markets as users find ways to circumvent the restrictions.