A Kenyan court has frozen more than KES 317 million, or about $2.11 million, in cryptocurrency and bank deposits belonging to two individuals under investigation for allegedly laundering proceeds of crime through crypto wallets, shell companies, bank accounts and international remittance channels.

According to court documents filed by the Assets Recovery Agency (ARA), investigators traced what they describe as a sophisticated money-laundering network involving more than KES 300 million, or about $2 million. The funds allegedly moved through cryptocurrency exchanges and Kenya's banking system before attempts were made to conceal their origin.

Court documents identify Michael, Glory, Kevin Kipngeno, Samuel Simiyu, Wanza Mutuku and Eliud Korir as part of the crypto transaction chain under investigation.

The frozen assets include KES 115 million, or about $767,000, held as 751,853.70 USDT in a Binance wallet linked to Glory Kithure. Another 896 USDT, equivalent to about KES 115,852 or $772, was linked to Michael Machimbo. Authorities also froze KES 17.6 million, or about $117,000, across nine bank accounts held at Equity Bank, Stanbic Bank, NCBA, KCB and Absa.

Investigators say the alleged laundering scheme relied on USDT, the dollar-backed stablecoin that maintains parity with the US dollar and enables rapid cross-border value transfers without traditional banking intermediaries. Funds allegedly moved through several crypto accounts before being converted into Kenyan shillings.

The USDT allegedly originated from a NoOnes account controlled by Samuel Simiyu but registered using Wanza Mutuku's identification details. NoOnes is a peer-to-peer cryptocurrency marketplace that emerged following Paxful's shutdown in 2023, serving users in markets across Africa and the Global South. Investigators say the funds were then transferred into Binance wallets allegedly controlled by Michael and Glory.

Most of the stablecoins were later transferred to Kevin Kipngeno's Binance wallet, where investigators say they were converted into Kenyan shillings before being remitted into local bank accounts.

Between June and September 2024 alone, Michael's Binance wallet allegedly received 220,508 USDT in 10 transactions.

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Court records further indicate that between February 2023 and November 2025, the same wallet transferred or withdrew about 899,130 USDT, equivalent to roughly Sh116.3 million.

Glory's Binance wallet allegedly received 930,597 USDT between January 2023 and November 2025 before transferring out 178,491 USDT.

Samuel Simiyu reportedly told investigators that he operated accounts on NoOnes, OKX and Paxful. He also admitted that Michael approached him about using those accounts to transfer cryptocurrency into Binance wallets.

Court filings show investigators believe the pair received millions of shillings through a network of intermediaries, shell companies, international money transfer services and cryptocurrency platforms.

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According to the ARA affidavit, the alleged operation relied on two parallel channels.

One channel involved six individuals and two companies that transferred funds into Kenya through international remittance providers before routing the money into local bank accounts.

The second channel allegedly used cryptocurrency, with digital assets moving through Binance wallets before being converted or transferred through conventional banking channels.

Investigators claim the flow of funds followed a complex trail intended to conceal their origin, combining crypto transactions with multiple bank accounts and corporate entities to obscure ownership and the source of the money. The agency argues that the structure carried characteristics commonly associated with money-laundering operations.

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In another example cited by investigators, funds originating from Sendwave and another individual allegedly moved through the same chain before enough money accumulated to make a Sh9.38 million payment to Ace Prestige Auto Ltd for another vehicle.

Detectives say they have already sent a Mutual Legal Assistance (MLA) request to the United States seeking transaction records linked to international remittance providers. Such cross-border cooperation is increasingly significant in crypto-related investigations, as blockchain analytics firms and major exchanges that can provide transaction-level data are frequently based in or operate under US jurisdiction.

The court has issued preservation orders over the assets pending the outcome of investigations. The orders prevent the suspects from accessing or transferring the funds while authorities continue tracing the financial flows.

The case comes as Kenya increases oversight of the virtual asset sector following enactment of the Virtual Asset Service Providers (VASP) Act, which introduced licensing requirements and anti-money-laundering obligations for crypto service providers. The legislation is intended to bring cryptocurrency businesses under formal regulatory supervision while aligning Kenya's framework with international standards for combating illicit financial flows.

Crypto crime has become a concern in recent years, with Kenya emerging as one of the hotspots in Africa. Kenya has consistently ranked among the continent's largest cryptocurrency markets by adoption, with peer-to-peer trading volumes placing it in the upper tier of African countries tracked by blockchain analytics firms. Kenya's leading investigative body, DCI Kenya, has consistently warned that proceeds of crime in the country are largely laundered and concealed within real estate and cryptocurrency.

Kenya has been retained on the FATF grey list since 2024, with crypto crime referenced as one of the core reasons. The passage of the VASP Act and a crackdown on crypto crime are expected to see international restrictions easing.

The Financial Reporting Centre has reported suspicious transaction reports covering nearly Sh6.976 trillion over the three years to 2023, with banks accounting for about 91 percent of reported activity. The agency has identified sectors including real estate, legal services and accounting as areas vulnerable to money laundering, illustrating the scale of illicit financial flows that enforcement agencies are attempting to disrupt.

Authorities have reportedly brought together institutions including the Assets Recovery Agency, Financial Reporting Centre, Directorate of Criminal Investigations, Office of the Attorney General and Business Registration Service as part of a coordinated response to financial crime.