Kenya Launches Crypto Fraud Crackdown as Losses Surge to $43M
Kenya's Directorate of Criminal Investigations is deploying a specialized cyber unit to combat cryptocurrency fraud after local investors lost KES5.6 billion ($43.3 million) in 2024 - a 73% annual increase. The move reflects growing global regulatory scrutiny as digital asset adoption outpaces consumer protections.
"We're forming a ruthless strike force against crypto scams," said Rosemary Kuraru of Kenya's DCI forensic lab, noting criminals increasingly exploit blockchain anonymity. The crackdown comes as Kenya ranks among Africa's hardest-hit markets for digital crime, with total cyber losses hitting $231.5 million last year.
While cryptocurrencies like BTC and ETH gain traction for remittances and decentralized finance, the lack of oversight has allowed fraudsters to flourish. The new unit will focus on tracing transactions across exchanges including Binance and Coinbase, where most scam victims report losing funds.
