CRYPTO CRIME | Kenyan Detectives Snub a Woman for a USDT-Linked Fake Gold Scheme

Kenyan detectives have arrested a woman accused of masterminding a fake gold scheme that allegedly defrauded an American investor of more than $431,000 in the stablecoin USDT, in the latest high-profile fraud case to spotlight the country’s growing battle with financial and crypto-linked crime.

According to Kenya’s Directorate of Criminal Investigations (DCI), the suspect, identified as Mildred Kache, also known as Sabreena Ayesha, was arrested at Crystal Villas in Nairobi’s upscale Kilimani neighborhood after investigators tracked her through what authorities described as a forensic-led investigation.

Police said the alleged scam began when the suspects convinced the U.S. national they could supply 400 kilograms of gold bars. The investor later traveled to Nairobi to finalize the deal after receiving what authorities described as convincing documentation and assurances.

Once agreements were signed, the victim transferred USDT 431,380 to accounts linked to the suspects, believing the shipment would proceed as planned, investigators said. However, the gold was never delivered and the suspects allegedly disappeared after receiving the funds.

The DCI said a second suspect, Ibrahim Yusuf Mohamed, escaped arrest during the operation, abandoning a black Mercedes-Benz E50 that was later seized by investigators as part of the probe. Authorities said efforts to trace and apprehend him are ongoing.

The case adds to a growing list of crypto and investment-related fraud incidents in Kenya, where law enforcement agencies have intensified scrutiny of digital asset crimes amid rising adoption of cryptocurrencies and stablecoins across East Africa.

In recent years, Kenyan authorities have investigated multiple cases involving fraudulent crypto investment schemes, SIM swap fraud, online forex scams and digital asset-linked money laundering operations targeting both local and foreign investors.

Since 2025, Kenyan authorities also stepped up cooperation between the DCI, financial intelligence units, and international agencies to combat cyber-enabled financial crimes, particularly those involving virtual assets and cross-border transactions.

The country has increasingly become a regional hub for crypto activity due to its high mobile money penetration and growing fintech ecosystem, but regulators and investigators have repeatedly warned that weak oversight and informal trading networks have also made it attractive to fraudsters.

The Kenya government is currently advancing efforts to establish clearer oversight for virtual asset service providers, with policymakers seeking to strengthen anti-money laundering compliance and investor protection frameworks as crypto usage expands.

The arrested suspect remains in police custody pending arraignment, the DCI said.

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