Kenyan police arrested three peer-to-peer Bitcoin brokers Emma Kariuki, Stanley Mumo, and Timothy Gachehe for selling stolen money LocalBitcoins platform. The funds were allegedly stolen by a person using the pseudonym "BADASS20" from the I & M bank and a Safaricom Pay Bill account.
According to a Kenyan Wall Street regional media report, the anonymous thief stole KEH's 10.2 million (about $ 100,000) financial institutions and used the money to buy Bitcoins via the Internet. LocalBitcoins exchange.
Local police were able to track the stolen money on various bank accounts, including those belonging to arrested Bitcoin traders.
During the police investigation, traders claimed they did not know that the money used by the anonymous thief to buy Bitcoin had been stolen and that they were simply doing what was wrong. They claimed to be a "normal" commercial activity. Based on their trading history on the trading platform, they seem to be telling the truth
Despite their seemingly valid defense, the Kenyan Bank Fraud Investigation Unit (BFIU) stopped traders and froze their bank accounts. The brokers, however, were able to post bullets and were eventually released. They must attend a preliminary hearing in December 2017 in anticipation of a full hearing in January 2018.
State of Cryptocurrency Trading in Kenya
Peer Digital Currency (P2P) Kenya's market is flourishing despite the warning issued by the country's central bank in 2015, advising citizens to refrain from dealing with Bitcoin and other virtual currencies.
This last case of bank fraud involving cryptocurrence should have a crippling effect. effect on the local virtual currency market. It remains to be seen, however, whether this incident will force the government to introduce drastic measures to regulate the market or whether industry will consider it an isolated case and ignore it.