US Charges Kenyan, 5 Others Over Alleged Crypto Investment Fraud Targeting Americans

US Charges Kenyan, 5 Others Over Alleged Crypto Investment Fraud Targeting Americans

A Kenyan citizen is among six suspects charged by the United States over an alleged cryptocurrency investment scam that investigators say targeted hundreds of Americans through fake online relationships and fraudulent non-fungible token (NFT) investments.

The US Department of Justice announced the charges as part of an enforcement operation targeting international criminal networks accused of using digital platforms to defraud American investors.

According to US authorities, the suspects were based in Africa and allegedly had links to criminal networks in Southeast Asia and China. Investigators claim the group operated scam compounds in Madagascar after relocating activities from Cambodia following law enforcement action there.

The suspects include nationals of Kenya, Uganda, Cameroon and Rwanda. Their identities and individual roles were not detailed in the information provided in the announcement.

The US government said the case forms part of a wider effort to disrupt transnational criminal organisations involved in cryptocurrency fraud.

“The Strike Force announced charges against six Africa-based scammers, with connections to Southeast Asia and China, who targeted Americans with fake Non-fungible Token (NFT) investment scams,” the US Department of State said.

Suspects Allegedly Used Fake Online Relationships

Investigators allege that the suspects approached victims through dating websites and other online platforms, posing as attractive women to establish personal relationships and build trust.

After gaining the victims’ confidence, the suspects allegedly persuaded them to connect their cryptocurrency wallets to fraudulent websites presented as NFT investment opportunities.

NFTs are digital assets recorded on a blockchain and can represent items such as artwork, collectibles and other digital content. Although legitimate NFT transactions exist, fraudulent platforms can use the technology to deceive investors and steal their funds.

US authorities claim that once victims connected their wallets, the suspects encouraged them to deposit additional cryptocurrency before secretly transferring money out of the accounts.

“Once connected, the scammers willed the victims to continue to fund their cryptocurrency wallets, and then surreptitiously pulled money from the victims’ wallets without their knowledge,” the authorities said.

The allegations suggest that the scheme combined relationship-based deception with cryptocurrency transactions to obtain money from victims who believed they were investing in legitimate opportunities.

The charges remain allegations, and the suspects are entitled to the presumption of innocence unless proven guilty in court.

FBI Traces Crypto Wallets Linked to Hundreds of Victims

According to the US government, investigations led the Federal Bureau of Investigation (FBI) to Madagascar, where authorities identified more than 74 cryptocurrency wallets associated with approximately 800 victims across the United States.

The victims reportedly suffered financial losses after interacting with fraudulent investment platforms online.

Investigators further allege that money obtained through the scheme was transferred to cryptocurrency accounts associated with actors based in China.

The US administration also seized websites linked to the alleged operation as investigations continued.

“As alleged in affidavits in support of an arrest of six individuals unsealed today, a criminal group with connections to Malaysia and China opened scam compounds in Madagascar in early 2025, likely having moved those operations from Cambodia after law enforcement action in that country,” the US statement added.

The alleged movement of operations between countries highlights the challenges law enforcement agencies face when investigating digital fraud involving international networks, cryptocurrency wallets and victims spread across multiple jurisdictions.

US Expands Crackdown on Cryptocurrency Fraud

The charges were announced by US Attorney Jeanine Ferris Pirro alongside federal law enforcement agencies and other government partners through the Department of Justice’s Scam Centre Strike Force.

The initiative targets alleged cybercrime operations linked to transnational criminal organisations that use online platforms to steal money from American citizens.

The case also highlights the growing use of cryptocurrency in investment scams, where criminals exploit the difficulty victims may face in tracing or recovering digital assets after transfers are completed.

Kenyans have previously been linked to investigations involving alleged international fraud networks targeting victims abroad. Such cases have drawn attention to the role of digital communications and online financial platforms in cross-border criminal activity.

For investors, the case underscores the importance of independently verifying investment websites, avoiding unsolicited financial advice from online acquaintances and never connecting cryptocurrency wallets to unverified platforms.

The US investigation remains ongoing, with authorities seeking to disrupt the alleged network and establish the roles of those charged.

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US Charges Kenyan, 5 Others Over Alleged Crypto Investment Fraud Targeting Americans