Interpol has linked 14 Kenyans to a cryptocurrency scheme worth KSh 55.5 million that is suspected of funding terrorism activities.
In a statement published on Wednesday, October 22, the global police agency revealed that the network used a virtual asset service provider to launder money, and two suspects have already been arrested.
“In Kenya, a suspected money laundering operation using a virtual asset service provider was identified as having potential links to terrorism financing. The scheme, worth approximately USD 430,000, involved 12 people, two of whom have been arrested so far,” read the statement.
Meanwhile, in a separate case, two Kenyans were arrested for the online recruitment of young people from East and North Africa into terrorist groups.
Interpol Probe Links Kenyan Crypto Network to Terror Financing
The report revealed that the funds used for recruitment and radicalization were traced through a cryptocurrency trading platform back to individuals in Tanzania.
“One notable transnational case involved a massive cryptocurrency-based Ponzi scheme, which claimed to be a legitimate online trading platform, affected at least 17 countries around the world, including Cameroon, Kenya, and Nigeria,” Interpol said. “The scheme accumulated more than 100,000 victims around the world, with an estimated loss to victims of USD 562 million.”
According to Interpol, investigations into Operation Catalyst found that several large-value wallets were potentially linked to terrorism financing. It noted that the case is still ongoing, with investigations ongoing.
Also Read: Biggest Cybercrime Bust Ever? INTERPOL & AFRIPOL Arrest 1,200 in Global Operation
Four Kenyans Among 83 Arrested
The crackdown, conducted between July and September this year, aimed to identify and disrupt financial flows and schemes connected to terrorism financing and its support networks.
During the operation targeting terrorism financing and related illegal activities, authorities made 83 arrests across six African countries and identified 160 persons of interest.
Of the 83 arrests, 21 were for terrorism-related crimes, 28 for financial fraud and money laundering, 16 for cyber-enabled scams, and 18 for the illicit use of virtual assets.
“Over the two-month operation, jointly coordinated by INTERPOL and AFRIPOL, authorities across participating countries screened more than 15,000 persons of interest and entities, uncovering around USD 260 million in both fiat and virtual currencies potentially linked to terrorism-related activities,” read the statement further.
“Approximately USD 600,000 has already been seized, with additional investigations underway to trace and recover further assets.”
Also Read: 17 Terrorists Arrested in Kenya Under Major Interpol Operation
The arrests and identification of persons of interest were carried out during a joint operation with AFRIPOL and seven regional partners, including Kenya.
According to Interpol, tackling terrorist financing is particularly complex for law enforcement, as it often cuts across diverse criminal activities, including fraud, kidnapping for ransom, illicit trade, online scams, Ponzi schemes, and the misuse of virtual assets.
These illegal activities can be linked to terrorism financing directly—when terrorist groups receive funds from such schemes—or indirectly, through money laundering or intermediary networks.
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