Kenyan Court Detains Man over $440K Crypto Investment Scheme

A Kenyan court has granted the detention of a man accused of operating a cryptocurrency investment platform that allegedly collected $440,000 from unsuspecting investors. The suspect, Dickson Ndege Nyakango, was arrested on May 4 at an I&M Bank branch after authorities received an alert about a suspicious mobile app listed on Google Play and the Apple App Store.

The investigation began after Kestrel Capital flagged the platform's artificial intelligence-powered investment fund, which promised daily returns of up to 7% and recruited users through WhatsApp groups. The platform allegedly instructed users to deposit funds via bank accounts, Paybill numbers, and mobile money channels, with one account linked to the suspect receiving approximately $260,200 between April 8 and April 29 alone.

The court's decision is seen as a pivotal moment for Kenya's digital-asset landscape, which has been plagued by unlicensed crypto schemes targeting retail investors. Despite growing regulations, including the Virtual Asset Service Providers Act passed in October 2025, enforcement gaps remain, with regulators warning that unlicensed platforms continue to operate.