DCI Arrests Nairobi Fraudsters for Scamming Chinese National Ksh6.5 Million in Cryptocurrency Deal
The Directorate of Criminal Investigations (DCI) has arrested two Kenyan fraudsters accused of conning a Chinese national out of Ksh6.5 million in a cryptocurrency scam.
In a statement released on Friday, February 28, DCI revealed that the suspects had posed as cryptocurrency exchange experts and convinced the Chinese investor that they could facilitate a secure digital currency transaction.
“Kilimani detectives have apprehended two cunning fraudsters who swindled a Chinese national of Ksh6.5 million on February 20, 2025, at Rose Gardens in Kileleshwa,” the statement read.
How the Scam Was Executed
According to investigators, the two fraudsters lured the victim into believing they were experienced crypto traders. During the supposed exchange process, one of them quickly grabbed the money, which was placed inside a carrier bag, and fled through a backdoor.
The other suspect remained behind to reassure the victim, pretending to be a reliable technician who would ensure the transaction was completed. However, after realizing he had been deceived, the Chinese national reported the matter to the authorities.
DCI’s Investigation and Arrests
Following extensive investigations, the DCI managed to track down and arrest the two suspects separately. One of them was granted release on a Ksh1 million cash bail, while the other—who had escaped with the money—was remanded at Industrial Area Prison as he awaited a ruling on his bond terms.
The arrests come at a time when Kenya is looking to introduce laws to regulate cryptocurrency trading.
Government’s Plans to Regulate Crypto Trade
Earlier this year, Treasury Cabinet Secretary John Mbadi disclosed that the government was working on policies to legalize cryptocurrency trading. His announcement followed a recommendation by the International Monetary Fund (IMF), which advised Kenya to establish a clear regulatory framework for cryptocurrencies to safeguard consumers and mitigate financial risks.
Currently, cryptocurrency trading in Kenya remains officially banned, but many people continue to engage in it through underground networks. Despite the ban, digital currencies have gained significant popularity, with traders finding ways to bypass existing restrictions.
The government sees a regulated cryptocurrency market as a potential source of revenue. According to CS Mbadi, the introduction of clear laws will not only protect investors but also create new economic opportunities.
The proposed regulations aim to oversee Virtual Assets (VAs)—which represent digital value that can be traded, transferred, or used for payments or investments. Additionally, they will monitor Virtual Asset Service Providers (VASPs), which include individuals and businesses facilitating cryptocurrency transactions on behalf of others.
If implemented, these regulations could bring structure to the rapidly growing crypto market, ensuring both security and financial transparency in the sector.
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