Kenyan and US agencies cooperated to recover cryptocurrency linked to alleged student aid fraud.
Kenyan investigators, prosecutors and regulators helped recover cryptocurrency linked to an alleged US student financial aid fraud network.
The US Embassy in Nairobi has praised Kenyan agencies for helping secure a crypto seizure exceeding USD750,000, about Sh97 million. The joint operation targeted funds linked to an alleged multimillion-dollar student financial aid fraud scheme in the United States.
The embassy credited cooperation between Kenyan and American authorities with helping disrupt the international network. It also recognised local institutions for tracing and recovering money allegedly stolen from American taxpayers.
Participating agencies included the Directorate of Criminal Investigations, Assets Recovery Agency and Office of the Director of Public Prosecutions. The Kenya Revenue Authority and Financial Reporting Centre also took part.
Crypto seizure follows Operation Ghostbusters charges
The recognition followed an October 29 announcement by the US Department of Justice that five people faced charges. Those charges relate to the wider alleged fraud scheme under Operation Ghostbusters.
Among the accused is Kenyan national Francis Mogambi, who faces 10 federal charges involving government-funded student financial aid. Prosecutors allege that he used stolen American identities to obtain the payments fraudulently.
According to the indictment, Mogambi allegedly worked with accomplices in Kenya to obtain personal information belonging to unsuspecting Americans. They allegedly used those identities to enrol people in educational institutions and redirect federal student aid payments.
Prosecutors further allege that Mogambi kept 30 per cent of the proceeds and sent the remainder to co-conspirators in Kenya. However, the charges remain allegations, and he is presumed innocent until a court proves his guilt.
Investigators pursue wider financial aid network
The seized cryptocurrency came from an account belonging to a Kenyan national linked to the broader network. The Justice Department described the recovery as its National Fraud Enforcement Division’s first international seizure of this kind.
Investigators estimate that the wider alleged scheme may have cost American taxpayers more than USD200 million since at least 2021. Meanwhile, the FBI has identified over USD32 million in losses directly linked to specific suspects.
Authorities have also flagged 830,840 potentially fraudulent student financial aid accounts associated with nearly USD130 million. American officials visited Kenya in September to discuss extradition, prosecution and recovery of allegedly stolen funds.
The operation brings together the FBI, US education inspectors, US attorneys’ offices and Kenyan law enforcement agencies. The embassy said investigations were continuing, while thanking Kenyan investigators and prosecutors for their professionalism and assistance.
