US Embassy credits Kenyan agencies in USD750,000 crypto seizure

NAIROBI, Kenya, Oct 30 – The US Embassy in Nairobi has praised Kenyan investigative agencies, prosecutors and financial regulators for their role in a joint operation that seized more than USD750,000 (about Sh97 million) in cryptocurrency linked to a multimillion-dollar student financial aid fraud scheme in the United States. The embassy said cooperation between Kenyan and American law enforcement agencies had been instrumental in disrupting the international fraud network, highlighting the role of local institutions in tracing and recovering funds allegedly stolen from American taxpayers.

“Tackling an international fraud ring of this scale is the result of longstanding cooperation between Kenya and the United States. This team of investigators is not finished with their work to fight fraud and protect citizens,” the embassy said in a statement. The Kenyan agencies involved included the Directorate of Criminal Investigations (DCI), Assets Recovery Agency (ARA), Office of the Director of Public Prosecutions (ODPP), Kenya Revenue Authority (KRA) and the Financial Reporting Centre.

The embassy said investigations into the wider network were ongoing, signalling that further enforcement action could follow as authorities pursue individuals suspected of involvement in the alleged scheme. Operation Ghostbusters The recognition follows an announcement by the US Department of Justice on Thursday, October 29, that five people had been charged in connection with the wider alleged fraud scheme, dubbed Operation Ghostbusters.

Among those charged is Kenyan national Francis Mogambi, who faces 10 federal charges over allegations that he used stolen identities of American citizens to fraudulently obtain government-funded student financial aid. According to the indictment, Mogambi allegedly worked with accomplices in Kenya to obtain personal information belonging to unsuspecting Americans, enrol them in educational institutions and redirect federal student aid payments.

Prosecutors allege that he retained 30 per cent of the proceeds and transferred the remainder to co-conspirators in Kenya. The charges against Mogambi remain allegations, and he is presumed innocent until proven guilty in court. Proceeds of fraud The cryptocurrency seizure involved funds held in an account belonging to a Kenyan national linked to the broader network.

The US Justice Department described it as the first international seizure of its kind in the history of its National Fraud Enforcement Division. Investigators estimate that the wider alleged scheme may have cost American taxpayers more than $200 million since at least 2021. The FBI has identified more than USD32 million in losses directly linked to specific suspects, while authorities have flagged 830,840 potentially fraudulent student financial aid accounts associated with nearly USD130 million.

The Justice Department also disclosed that American officials visited Kenya in September to discuss extradition, prosecution and the recovery of funds allegedly stolen from US taxpayers. The operation involves the FBI, the US Department of Education’s Office of Inspector General, US attorneys’ offices and Kenyan law enforcement agencies. The embassy thanked Kenyan investigators and prosecutors for their professionalism and assistance, reaffirming the two countries’ commitment to working together against cross-border financial crime.