The Directorate of Criminal Investigations (DCI) on Friday, February 28, announced it had arrested two Kenyans who had conned a Chinese national Ksh6.5 million in a cryptocurrency scam.
Through a statement, DCI revealed that the two had presented themselves as cryptocurrency exchange experts to the Chinese national able to facilitate a crypto exchange.
“Kilimani hawkshaws have nabbed two cunning fraudsters who swindled a Chinese national Sh6.5 million on February 20, 2025, at Rose Gardens in Kileleshwa,” DCI stated.
“The duo masqueraded as cryptocurrency exchange experts, claiming that they were in a position to facilitate a cryptocurrency exchange,” the detectives added.
Detailing the con job, the sleuths said that one of the suspects fled with the money during the currency exchange, with the other remaining behind to reassure the Chinese man that his money was in safe hands.
“While converting the cash into cryptocurrency, one of them 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 his accomplice, who posed as a trustworthy technician,” DCI noted.
In their pursuit of the two, DCI revealed that the two suspects were arrested separately, with one released on a one million cash bail and the fleeing suspect remanded in Industrial Area Prison pending determination of bond terms.
The arrest of the two came at a time when Kenya is eyeing to ramp up its effort to provide a legal framework for crypto trading.
Earlier this year, Treasury Cabinet Secretary John Mbadi revealed that plans were underway to legalise crypto trade just after the International Monetary Fund (IMF) had advised the country to enhance its regulatory framework for cryptocurrencies to better protect consumers and address financial risks.
This came even as Kenya had imposed a ban on crypto trading, although its usage has persisted in underground markets, with users finding ways to bypass the restrictions.
According to the government, a regulated crypto ecosystem would provide a potentially lucrative new revenue stream for the government. According to Mbadi, the emergence of the digital currency offers ‘dynamic opportunities’.
In CS Mbadi’s plan, the new regulations will seek to regulate the Virtual Assets (VAs), which are digital representations of value that can be digitally traded, transferred, or used for payment or investment purposes, and Virtual Asset Service Providers (VASPs) which are entities or individuals that conduct activities related to virtual assets on behalf of others.
