Cryptobro in hot soup after court grants permission for his detainment for investigations

A court in Nairobi has granted police permission to detain a man for seven days as investigations continue into an alleged multi-million-shilling cryptocurrency fraud scheme.

Arrest at bank

The suspect, identified as Dickson Ndege Nyakango, was reportedly arrested at a local bank while attempting to withdraw funds believed to be connected to the alleged scam.

According to investigators, Nyakango is suspected of receiving approximately KSh33 million linked to the fraudulent operation.

Fake investment schemes

Detectives allege that the suspect used fraudulent online applications to lure unsuspecting investors into fake cryptocurrency and investment opportunities.

Authorities believe the scheme involved impersonating a licensed investment company in order to gain public trust before siphoning money from victims.

Investigators estimate that more than KSh58 million may have been stolen through the operation.

Ongoing investigations

Police say they are now tracing the movement of the stolen cryptocurrency assets and examining how the funds were transferred through various accounts and digital platforms.

The seven-day detention order is expected to allow detectives more time to analyse financial records, recover evidence and identify possible accomplices connected to the alleged fraud network.

The case adds to growing concerns over online investment scams and the misuse of cryptocurrency platforms to target unsuspecting investors in Kenya.