NAIROBI, Kenya—The United States Embassy in Nairobi has credited Kenyan law enforcement agencies for helping investigators seize more than $750,000 (approximately Sh97 million) in cryptocurrency linked to an international student financial aid fraud investigation.
In a statement on Friday, October 30, the embassy said cooperation between Kenya and the United States had been instrumental in tackling the alleged multimillion-dollar fraud scheme, which involved stolen American identities and the illegal acquisition of federal student loans and grants.
The embassy specifically recognised the Directorate of Criminal Investigations (DCI), Assets Recovery Agency (ARA), Office of the Director of Public Prosecutions (ODPP), Kenya Revenue Authority (KRA) and Financial Reporting Centre (FRC) for their assistance.
It said intelligence provided by Kenyan agencies had helped investigators trace and seize the cryptocurrency from an account belonging to a Kenyan national suspected of being connected to the network.
“Tackling an international fraud ring of this scale is the result of longstanding cooperation between Kenya and the United States,” the embassy said.
It added that the investigation was ongoing and that the team of investigators was continuing its work to combat fraud and protect citizens.
US Recognises Kenya’s Role in International Investigation
The embassy also expressed gratitude to Kenyan law enforcement officers and prosecutors for their assistance and professionalism, highlighting the importance of cross-border cooperation in tackling financial crimes.
The statement followed an announcement by the US Department of Justice on Thursday, October 29, detailing federal charges against five people in three states under an investigation dubbed Operation Ghostbusters.
The suspects are accused of using stolen identities belonging to American citizens to create fraudulent student accounts and obtain federal education loans and grants before transferring the proceeds to overseas associates, including individuals in Kenya.
One of the cases involves Kenyan national Francis Mogambi, who was indicted in Nebraska on charges of theft of government money and aggravated identity theft.
The Justice Department said investigators had also identified more than 830,000 potentially fraudulent Federal Student Aid identification accounts associated with nearly $130 million.
The embassy’s statement underscores the role of Kenyan agencies in the international investigation as authorities continue efforts to identify suspects, trace illicit financial flows and recover proceeds linked to the alleged fraud.
