Was It A Hack or Rugpull? Raila Coin Posts On His Social Media Raises Questions

A deepfake video and suspicious cryptocurrency promotion on Kenya’s former Prime Minister’s verified X account exposes the growing threat of AI-powered scams in Africa’s crypto space

Kenya’s crypto community was stunned on September 18 when former Prime Minister Raila Odinga’s verified X account announced the launch of a national cryptocurrency called “Kenya Token.” The post, viewed by millions before its swift deletion, featured a deepfake video of Odinga endorsing what cybersecurity experts quickly identified as an elaborate scam.

The Viral Announcement That Disappeared

Raila’s coin post now deleted.

The deleted post claimed Kenya was “stepping up to lead Africa into the crypto revolution” with a new digital asset built on the Solana blockchain.

Accompanied by an AI-generated video of Odinga, the message promised the Kenya Token would improve the country’s financial system and support economic growth, directing users to join a Telegram channel for updates.

However, the informal tone and promotional language were jarringly inconsistent with Odinga’s typical communication style.

More critically, no government institution corroborated what would have been a major national announcement.

The Central Bank of Kenya, National Treasury, and other relevant agencies remained silent.

On Friday, Odinga confirmed the inevitable: “My social media platforms were hacked. The video circulating is fake and misleading. Kindly ignore it.”

A Growing African Trend

This incident mirrors a disturbing pattern across the continent.

In February 2025, Tanzanian billionaire Mohammed Dewji’s X account was similarly compromised to promote a fake “$Tanzania” token.

Before the account was recovered, scammers had raised nearly $1.48 million through a deepfake endorsement video.

The Kenya Token project bore hallmarks of hasty assembly. Investigators discovered the project’s website launched on September 17, just one day before the viral post.

Despite claims of an imminent launch, no contract address existed, making the project impossible to verify or track.

The Deepfake Challenge

The sophistication of the AI-generated Odinga video highlights a growing threat.

While cybersecurity experts identified inconsistencies in voice patterns and lip synchronization, the quality was sufficient to initially fool many observers. This underscores the urgent need for improved digital literacy as deepfake technology becomes more accessible to malicious actors.

Kenya’s crypto landscape adds another layer of confusion.

The country already hosts the Kenya Digital Token (KDT), launched in July 2025, though this legitimate project faces its own scrutiny with a single wallet controlling 60% of token supply.

Virtual Asset Service Providers Bill

Kenya’s government has been working toward comprehensive cryptocurrency regulation.

The Virtual Asset Service Providers Bill, scheduled for second reading on September 23, aims to require crypto firms to establish local offices and comply with regulatory oversight.

The Raila Token incident may accelerate these discussions, demonstrating how easily bad actors can exploit public figures and create market confusion.

The Central Bank of Kenya maintains a cautious stance toward cryptocurrencies while exploring a Central Bank Digital Currency since 2022.

The government has also introduced incentives for legitimate crypto adoption, reducing the digital assets trade levy to 1.5% in the 2025 Finance Bill.

Lessons for Africa’s Crypto Future

This incident reveals critical vulnerabilities in Africa’s growing crypto ecosystem.

Even verified accounts of prominent political figures remain susceptible to sophisticated attacks, while AI-generated content becomes increasingly convincing.

The absence of clear regulatory frameworks creates space for fraudulent projects to operate, particularly in regions where cryptocurrency adoption is rapidly expanding.

For users, the case emphasizes the importance of verifying announcements through multiple official channels and understanding warning signs of deepfake content.

The reliance on Telegram for official communications and the lack of technical documentation should have raised immediate red flags.

For regulators and platforms, the incident demonstrates the need for enhanced security measures, improved deepfake detection capabilities, and faster response mechanisms for fraudulent activities.

As Kenya and other African nations develop digital currency strategies, protecting citizens from sophisticated scams becomes increasingly critical.

The continent’s crypto revolution shows immense promise, from Nigeria’s eNaira to Kenya’s potential expansion of M-Pesa into blockchain technology.

However, the Raila Token incident serves as a sobering reminder that technological advancement must be matched by robust security measures and public education.

Whether this was purely a security breach or part of a broader rug-pull strategy remains unclear.

What’s certain is that as Africa embraces digital currencies, the sophistication of threats targeting the ecosystem continues to evolve.

The incident highlights how quickly public trust can be exploited in the fast-moving world of cryptocurrency, making vigilance and verification more important than ever.