The Directorate of Criminal Investigations (DCI) has highlighted a worrying trend in Kenya involving cryptocurrency fraud. On Wednesday, January 7, the DCI issued a statement cautioning Kenyan crypto traders about an uptick in fraudulent activities by individuals masquerading as legitimate traders.
The alert comes amidst a series of investigations into complaints from investors who these scams have duped.
Investigators have uncovered a scheme where con artists distribute messages promising lucrative earnings from home, enticing individuals to sign up for what are touted as profitable online investment opportunities through unidentified links. These schemes often promise high returns, leading unsuspecting individuals to become victims of fraud.
The DCI’s warning emphasizes the importance of verifying the legitimacy of any online investment platforms by consulting with the Capital Markets Authority (CMA) and the Communications Authority of Kenya (CA) before committing funds. The public is also encouraged to be vigilant and report any suspicious investment propositions to the DCI through their toll-free hotline.
This advisory is part of a broader effort to safeguard Kenyan investors, coinciding with legislative efforts to introduce regulatory measures for the cryptocurrency market. The Blockchain Association of Kenya has drafted the country’s inaugural Virtual Assets Service Provider (VASP) bill, aiming to establish a regulatory framework for digital assets. This bill is slated for presentation to Parliament on February 14, marking a significant step towards regulating the crypto landscape in Kenya.