Wednesday, May 6, 2026 - A Nairobi court has allowed detectives from the Directorate of Criminal Investigations (DCI) to detain a suspect accused of receiving over Sh33 million linked to cryptocurrency investment scheme.
Milimani Senior Principal Magistrate Caroline Mugo granted
investigators permission to hold Dickson Ndege Nyakango for seven days as
investigations into the suspected fraud continue.
The application was made by Chief Inspector Achilles Omondi
of the DCI’s Capital Markets Fraud Investigation Unit, who told the court that
the suspect is being investigated for operating a collective investment scheme
without authorization, contrary to Section 23(2) as read with Section 34(A)(1)
of the Capital Markets Act, as well as conspiracy to defraud.
The court heard that releasing Nyakango at this stage could
jeopardize investigations, with the officer warning that the suspect might
withdraw funds from accounts that have not yet been frozen, potentially causing
irreparable losses to the public.
Investigators further noted that the case is complex,
involving a large number of victims, multiple bank accounts, and suspected
accomplices who are yet to be traced and arrested.
Authorities are also working to record statements from
affected investors and liaise with the Communications Authority of Kenya (CAK)
to analyze the online platforms used in the scheme.
According to court documents, between April 8th
and April 29th, 2026, Nyakango’s account allegedly received
Sh33,670,000 from fraudulent sources.
The account has since been frozen following a court order.
The court also heard that on April 22nd, 2026, a
complaint was filed by Genghis Capital Ltd regarding a suspicious investment
platform operating under the name “Genghis Strategy,” which allegedly
impersonated the licensed entity.
Preliminary findings indicate that the suspect’s account was
among those used to receive funds from the scheme.
Further analysis revealed the existence of multiple bank
accounts and M-Pesa numbers used to distribute the funds, prompting the need
for deeper investigations.
Nyakango was arrested on May 4th, 2026, at around
3:30 p.m at I&M Bank’s Kenyatta Avenue branch while allegedly attempting to
withdraw funds.
DCI told the court that the suspect operated two online
applications - KCLNL, which has since been pulled down, and GSIWEA, which is
still active, and warned that he could interfere with crucial evidence if
released.
Upon arrest, the suspect reportedly admitted to operating
several bank accounts that are yet to be fully investigated before the file is
forwarded to the Office of the Director of Public Prosecutions (ODPP) for
further action.
Investigations are ongoing. Watch the video>>> below
A Nairobi court has authorized police to detain a man for seven days after he allegedly received 33 million shillings in a massive cryptocurrency fraud scheme. Dickson Ndege Nyakango was arrested at a local bank while attempting to withdraw funds linked to the scam.
— The Kenyan Vigilante (@KenyanSays) May 6, 2026
The suspect… pic.twitter.com/wdQHE9v9E7
The Kenyan DAILY POST
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