Interpol Goes After 14 Kenyans Linked to International Crypto Scams

Fourteen Kenyans have been flagged by Interpol for allegedly financing terrorism through cryptocurrency and other virtual assets, with four already arrested as part of a continental crackdown on illicit financial flows.

The arrests are part of Operation Catalyst, a landmark operation conducted between July and September 2025 that resulted in 83 arrests across six African countries and identified 160 persons of interest. The countries involved in the sweep include Angola, Cameroon, Kenya, Namibia, Nigeria, and South Sudan.

In Kenya, investigators uncovered a suspected money laundering operation using a virtual asset service provider with potential links to terrorism financing, involving a scheme worth approximately 430,000 US dollars, equivalent to 55.55 million shillings, with 12 people implicated and two arrested so far .

In a separate Kenyan case, two individuals were arrested for online recruitment of young people from East and North Africa into terrorist groups, with funds traced through a cryptocurrency trading platform back to individuals in Tanzania .

The operation, jointly coordinated by Interpol and AFRIPOL, represents the first time financial crime, cybercrime and counter-terrorism units from multiple African countries have joined forces to specifically target terrorism financing. Authorities screened more than 15,000 persons of interest and entities, uncovering around 260 million US dollars in both traditional and virtual currencies potentially linked to terrorism-related activities .

Terror groups have increasingly turned to cryptocurrencies as a means of payment, exploiting the pseudonymous and decentralised nature of digital assets to conduct money laundering and other financial crimes. The criminals favour cryptocurrencies over formal banking systems because transactions carry a lower risk of detection by law enforcement or traditional banks, which are required to submit suspicious transaction reports.

Of the 83 arrests made, 21 were for terrorism-related crimes, 28 were for financial fraud and money laundering, 16 were linked to cyber-enabled scams and 18 were related to the illicit use of virtual assets . Approximately 600,000 dollars has already been seized, with additional investigations underway to trace and recover further assets.

The operation also exposed a massive transnational cryptocurrency-based Ponzi scheme that masqueraded as a legitimate online trading platform. The scheme affected at least 17 countries, including Cameroon, Kenya, and Nigeria, accumulating more than 100,000 victims worldwide, with estimated losses of 562 million US dollars .

As part of Operation Catalyst, a Red Notice was issued for an individual believed to be behind a sophisticated cryptocurrency scheme that scammed victims of approximately 5 million US dollars . The suspect allegedly redirected funds to multiple addresses and centralised exchange platforms to obscure the trail and convert the assets into regular currency. Investigators believe the case exhibits several traits consistent with known terrorist financing methodologies.

The crackdown comes as Kenya moves to regulate its burgeoning cryptocurrency sector. President William Ruto recently signed the Virtual Asset Service Providers Act, 2025, establishing a legal framework to regulate cryptocurrencies and other digital assets . The law creates a dual-regulator model where the Central Bank of Kenya will supervise payment processors and stablecoin issuers, while the Capital Markets Authority oversees trading platforms, exchanges, brokers, and investment advisers.

According to Chainalysis, Kenya ranked fourth in Africa by transaction volume between July 2024 and June 2025, receiving nearly 20 billion dollars in crypto assets . A large number of Kenyan firms have reportedly turned to cryptocurrencies for payments to foreign suppliers whenever there are dollar shortages or a weakening of the shilling, according to recent revelations by the International Monetary Fund.

The new regulatory framework requires all virtual asset service providers to obtain licenses and meet capital and cybersecurity requirements. Licensed platforms must segregate client funds, hold adequate reserves, protect customer data, and implement strict Know Your Customer checks and suspicious transaction reporting to curb money laundering and terrorism financing.

Interpol Secretary General Valdecy Urquiza emphasised the significance of the operation. “By sharing intelligence, expertise and resources, we can more effectively identify and disrupt the financial flows that support terrorist activities to stay one step ahead of these threats and keep our communities safe,” he said.

The operation received strategic cyber intelligence support from private sector entities including Binance, Moody’s and Uppsala Security, underscoring the growing importance of public-private partnerships in combating financial crime in the digital age.