REGULATION | Kenyan Detectives, the DCI, Nab Thieves Masquerading as Cryptocurrency Exchange Experts

Detectives in Nairobi have apprehended two fraudsters who swindled a Chinese national out of KES 6.5 million ($50.5K) in a cryptocurrency scam on February 20 2025, the investigative arm of the Kenyan police has revealed.

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Detectives in Nairobi have apprehended two fraudsters who swindled a Chinese national out of KES 6.5 million ($50.5K) in a cryptocurrency scam on February 20 2025, the investigative arm of the Kenyan police, the Directorate of Criminal Investigation (DCI), has revealed.

According to a post on X by the Kenya Directorate of Criminal Investigations (DCI), the suspects, Benson Macharia and Robinson Okwemo Nyandoro, masqueraded as cryptocurrency exchange experts, convincing their victim that they could facilitate a seamless transaction. However, the seemingly routine exchange quickly turned into a well-orchestrated fraud.

During the transaction, Nyandoro dramatically fled with the victim’s money, concealed in a carrier bag, through a backdoor. Meanwhile, Macharia, playing the role of a trustworthy technician, assured the victim that the transfer was underway, citing network delays as the reason for the holdup. As time passed and the promised cryptocurrency never materialized, the victim realized he had been duped and promptly reported the matter to Kileleshwa Police Station.

Detectives launched an investigation and, through forensic leads, arrested the first suspect, Macharia. He was arraigned before the Chief Magistrate’s Court in Kibera on February 25 2025, where he pleaded not guilty. He was released on a KES 1 million bail, with a surety of a similar amount.

Determined to bring all culprits to justice, detectives continued their pursuit and successfully arrested Nyandoro at the Hub Karen on February 27 2025.

Nyandoro was arraigned before the Chief Magistrate’s Court in Kibera today where he also pleaded not guilty. He will remain in custody at Industrial Area Prison pending a bond determination hearing scheduled for March 4 2025.

Officials have advised the public to be cautious when conducting cryptocurrency transactions and to confirm the legitimacy of those providing such services.

Members of the public are prone of being taken advantage of by crypto scammers, and the country has become a center for low-profile cypto scams, as revealed in 2022. Most victims are lured by the promise of high returns on their investments.

In December 2024, the International Monetary Fund (IMF) recommended that Kenya establish a transparent and predictable regulatory framework for the cryptocurrency market to safeguard consumers.

According to the IMF, Kenya relies on outdated regulations designed for traditional markets, which have ‘limited and no legally binding‘ authority over cryptocurrency markets. This explains the rise in crypto-related scams and other illicit activities.

In a conference in 2022 while highlighting the challenges on law and order in Kenya, Joe Mucheru, the then Cabinet Secretary, Ministry of Information and Technology in Kenya, said that Kenyans are getting defrauded by crypto scams to the tune of millions of dollars each year.

The country was also urged to consider further measures to increase financial literacy among potential investors in crypto assets.

 

 

 

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