Kenyan detectives have arrested a woman accused of leading a fake gold deal that allegedly defrauded an American investor of 431,380 USDT in Nairobi. The Directorate of Criminal Investigations (DCI) said the suspects promised to deliver 400 kilograms of gold but disappeared after receiving payments transferred to their bank accounts.
The case adds to growing concerns over rising crypto-related fraud in Kenya as digital asset use expands across the region. Investigators say the group used forged documents, negotiations, and business arrangements to convince the investor that the deal was real. The victim transferred the funds into the suspects’ bank accounts believing the gold shipment would be delivered as agreed.
Detectives trace crypto payments in Nairobi scam
The Directorate of Criminal Investigations said the victim traveled to Nairobi believing he would complete a legitimate gold deal. Investigators said that everything appeared convincing as documents were drawn, negotiations held, and once the fraudulent agreement was signed, the victim transferred millions into the suspects’ bank accounts believing the gold shipment would be delivered as agreed. But no sooner had the investor sent the 431,380 USDT payment, communication stopped suddenly. Investigators said the promised gold shipment never existed. The victim later reported the matter to Kenyan authorities after realizing he had been defrauded.
DCI officers traced digital and physical leads to Crystal Villas in Nairobi’s Kilimani area. They arrested a suspect identified as Mildred Kache, also known as Sabreena Ayesha, during the operation. However, another suspect, Ibrahim Yusuf Mohamed, escaped before officers arrived.
Authorities also recovered a black Mercedes-Benz E50 linked to the case. Police placed the vehicle in custody as evidence. Meanwhile, investigators continue searching for the second suspect involved in the scheme.
Kenya tightens oversight on crypto activity
The case adds to growing concern over cryptocurrency-related crime in Kenya. Authorities have recently handled more investigations involving digital asset fraud, forex scams, SIM swap attacks, and online investment schemes.
Starting from 2025, Kenyan authorities have stepped up collaboration between the FIUs and foreign investigators to combat cryptocurrency crime and potential money laundering through informal trading networks besides tackling fraud cases.
The country’s growing financial technology industry and use of mobile money have contributed to the adoption of cryptocurrencies by locals. However, regulatory bodies warn of an opportunity for fraudsters amid weak regulation in the informal markets.
At the same time, legislators are considering tougher regulations under the recently launched Finance Bill 2026, which calls for the verification and reporting of crypto transactions to the Kenya Revenue Authority.
Moreover, the legislation will enable authorities to share crypto tax information with other countries’ regulatory agencies. Authorities believe that the measures will help improve money laundering prevention measures amid rising digital asset activity.
Also Read: ₹43L Job Scam to ₹3,200Cr Syndicate: India’s Crypto Fraud Crisis Scales
