Kenyan Nationals Among 6 Charged in US Crypto Scam That Targeted 800 Americans and Stole Over $750,000
Key Takeaways
- •Six defendants, among them Kenyan nationals and a Kenyan business, face U.S. charges over an alleged cryptocurrency fraud that took more than $750,000 from roughly 800 American targets.
- •The group allegedly posed as women on dating websites to gain victims' trust and steered them to fraudulent NFT investment platforms that withdrew funds from connected crypto wallets without permission.
- •Investigators identified about 74 cryptocurrency wallets linked to victims across several U.S. states, tracing funds through public blockchain transaction records.
- •The alleged operation reportedly had connections to criminal networks in China and Malaysia and relocated from Cambodia to Madagascar in early 2025 following law enforcement action.
- •U.S. prosecutors are seeking the defendants' extradition from Madagascar, the step that will determine whether they are brought to a U.S. court to answer the charges.
Kenyan nationals and a Kenyan business are among six people charged in the United States over an alleged cryptocurrency investment scam that used fake online relationships to steal more than $750,000 from American victims, in a scheme that reportedly targeted about 800 Americans.
Prosecutors from the U.S. Department of Justice (DoJ) allege that the group operated scam compounds in Madagascar, where workers posed as women on dating websites to build trust with victims before directing them to fraudulent non-fungible token (NFT) investment platforms. Victims were instructed to connect their cryptocurrency wallets to the websites, allowing the scammers to withdraw funds without their knowledge.
Schemes of this type, in which fraudsters cultivate online romantic relationships before pitching bogus investments, are commonly referred to in law enforcement and industry reporting as "pig butchering" scams. U.S. agencies, including the FBI, have repeatedly issued public warnings about this fraud pattern, advising consumers to be wary of online contacts they have never met in person who push them toward cryptocurrency platforms.
The investigation and charges were highlighted in a report from Kenyan cryptocurrency outlet BitKE:
#Kenyans and a #Kenyan business named in the latest #crypto crime investigations and report from @TheJusticeDept #CryptoCrimeKE #CryptoLaunderingKE #CryptoKenya #CryptoKE @DCI_Kenya @CMAKenya @CBKKenya @NPSOfficial_KE — BitKE (@BitcoinKE) October 30, 2026
Investigators identified about 74 cryptocurrency wallets linked to victims located in several U.S. states. Tracing funds at the wallet level is a standard tool in such cases, because public blockchains openly record every transaction between addresses even when the identities controlling them are not immediately known. According to the allegations, the group had connections to criminal networks in China and Malaysia and relocated its operations from Cambodia to Madagascar in early 2025 following law enforcement action — a movement pattern that international researchers have documented among large-scale scam operations across Southeast Asia.
The case highlights the growing international reach of cryptocurrency investment fraud, in which romance scams and identity theft are increasingly used to steal digital assets from victims. It also illustrates how such prosecutions depend on cross-border cooperation, since the alleged conduct, the defendants, and the supporting infrastructure span multiple jurisdictions.
U.S. authorities say the six defendants face charges linked to the alleged scheme, and prosecutors are seeking their extradition from Madagascar — the step that will determine whether the defendants are brought to a U.S. court to answer the charges.
The charges remain allegations until proven in court.
Source: BitcoinKE
