Key Takeaways
- • The U.S. Department of Justice charged six Africa-based suspects, including one Kenyan and one Ugandan, in a cryptocurrency investment scam that allegedly targeted hundreds of Americans.
- • The FBI identified more than 74 cryptocurrency wallets linked to approximately 800 U.S. victims who reported financial losses from fraudulent online investment platforms.
- • The scheme used fake online relationships on dating sites and fraudulent non-fungible token (NFT) investment websites to drain victim wallets without their knowledge.
- • According to the State Department, the criminal network had ties to Southeast Asia and China and operated scam compounds in Madagascar from early 2025, likely relocated from Cambodia after law enforcement action.
- • The Scam Centre Strike Force seized the websites tied to the scheme, and investigations are ongoing.
Summary
The U.S. Department of Justice has charged six suspects based in Africa in connection with a cryptocurrency investment fraud that allegedly targeted hundreds of Americans. Among the accused are one Kenyan citizen and one Ugandan, with the remaining suspects from Cameroon and Rwanda, according to the source report. U.S. Attorney Jeanine Ferris Pirro announced the actions, which were taken by the Department of Justice's Scam Centre Strike Force alongside federal law enforcement and interagency partners. The Strike Force targets cyber and cryptocurrency investment scams carried out by transnational criminal organisations.
According to a State Department statement, the suspects had links to criminal networks in Malaysia, Southeast Asia and China. Affidavits supporting the arrests allege that the group opened scam compounds in Madagascar in early 2025, likely after moving operations from Cambodia following law enforcement action there. The scheme allegedly operated by posing as attractive women on dating sites, building relationships with victims, and then persuading them to connect their cryptocurrency wallets to fraudulent websites linked to NFT investments. Once wallets were connected, the scammers encouraged further funding and then covertly withdrew funds, U.S. authorities said.
FBI investigators traced activity to Madagascar and identified more than 74 cryptocurrency wallets associated with roughly 800 victims across the United States who reported losses. Funds taken from victims were moved to cryptocurrency accounts linked to Chinese-based actors. Authorities seized the websites associated with the scheme, and the investigation is continuing. The source notes that Kenyans have recently been linked to international scam networks, and cites a Bloomberg investigation describing schemes that range from fake investment opportunities to online relationships designed to win trust before theft.
According to a State Department statement, the suspects had links to criminal networks in Malaysia, Southeast Asia and China. Affidavits supporting the arrests allege that the group opened scam compounds in Madagascar in early 2025, likely after moving operations from Cambodia following law enforcement action there. The scheme allegedly operated by posing as attractive women on dating sites, building relationships with victims, and then persuading them to connect their cryptocurrency wallets to fraudulent websites linked to NFT investments. Once wallets were connected, the scammers encouraged further funding and then covertly withdrew funds, U.S. authorities said.
FBI investigators traced activity to Madagascar and identified more than 74 cryptocurrency wallets associated with roughly 800 victims across the United States who reported losses. Funds taken from victims were moved to cryptocurrency accounts linked to Chinese-based actors. Authorities seized the websites associated with the scheme, and the investigation is continuing. The source notes that Kenyans have recently been linked to international scam networks, and cites a Bloomberg investigation describing schemes that range from fake investment opportunities to online relationships designed to win trust before theft.
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