The Arrest: A New Twist in Kenyan Cryptocurrency
In one of those stories that could easily be mistaken for a heist movie, three Bitcoin brokers found themselves in quite the pickle. Emma Kariuki, Stanley Mumo, and Timothy Gachehe faced the long arm of the law for allegedly facilitating the trade of stolen cash through the local peer-to-peer trading platform, LocalBitcoins. These three might need more than a good lawyer after being linked to a hefty KEH 10.2 million (roughly $100,000) stolen by someone cleverly hiding behind the moniker “BADASS20.”
The Scheme Unfolds
The laundry list of this fishing expedition revealed that the stolen funds emanated from I&M Bank and even a Safaricom Pay Bill account. The baffling mystery is how a mere three brokers managed to catch the interest of law enforcement. When all is said and done, they insist they were simply engaging in “normal” trading activity. Of course, “normal” in the world of cryptocurrency can stretch credulity a bit.
Investigation and Claims of Innocence
During the police investigation, the traders argued they were blissfully unaware that their Bitcoin transactions were tainted by thieving fingers. Their message threads on the trading platform appear to validate their defense. Maybe they were just too busy debating the merits of blockchain versus traditional banking when they should’ve been suspicious about the money flowing towards them!
The Legal Quagmire
Despite what could classify as a solid defense—or at least a crafty argument—the Kenyan Banking Fraud Investigation Unit (BFIU) wasn’t having it. They swooped in, arresting the trio and putting a freeze on their bank accounts faster than you can say “cryptocurrency regulation.” Thankfully for our unsuspecting brokers, they managed to post bail and were released. But hold onto your wallets; they have a preliminary hearing set for December 2017, leading into a full hearing in January 2018. Will they be able to swim through this legal muck? Only time will tell!
Climate of Cryptocurrency in Kenya
Now, let’s talk about the elephant in the room—what does this mean for cryptocurrency trading in Kenya? The local P2P market has been thriving despite warnings from the central bank since 2015 to steer clear of Bitcoin and similar virtual currencies. However, with a scandal like this brewing, you can bet the government is eyeing the situation closely. Will they take drastic actions to regulate the marketplace or brush this off as just another rogue incident? The pressure is on, and the cryptocurrency community is holding its breath.
+ There are no comments
Add yours