A Nairobi court detained suspected cryptocurrency trader Dickson Ndege Nyakango for seven days as detectives investigate an alleged crypto investment fraud worth KSh33.6 million.
Police arrested Nyakango on May 4, 2026, at the I&M Bank branch on Kenyatta Avenue. Detectives claim he tried to withdraw money linked to the alleged fraud.
Detectives probe alleged Crypto investment fraud
Investigators told the court that Nyakango operated an unlicensed collective investment scheme.
They also accused him of personation.
According to investigators, the scheme used a mobile application called KCLNL.
The application allegedly promoted an AI investment fund.
Detectives said it promised investors daily returns of up to seven percent.
They also alleged that the application falsely claimed links to established financial institutions.
Capital markets firms report the platform
Kestrel Capital (EA) Ltd and Genghis Capital Ltd reported the matter to investigators.
The two companies denied any connection with the application.
They accused the operators of using their names to mislead investors.
Investigators believe the scheme targeted members of the public through false representations.
Investigators trace millions
The DCI told the court that the suspects recruited investors through a WhatsApp group called “Kestrel & NATL Quantitative Trading Lab.”
The group instructed members to deposit money into specific bank accounts and a paybill number.
Investigators traced about KSh33,670,000 to an I&M Bank account linked to Nyakango.
The transactions allegedly took place between April 8 and April 29, 2026.
Police seek more time
Investigators believe Nyakango also operated another application known as GSIWEA.
They say the application remains active.
The DCI argued that releasing the suspect could interfere with investigations.
Detectives therefore asked the court for seven more days to complete inquiries into conspiracy to defraud and related offences.
Court grants detention orders
Investigators informed the court that Nyakango has no known fixed residence.
They also argued that he could flee if released.
Senior Principal Magistrate Carolyne Mugo Nyaguthii allowed the application.
She directed police to keep the suspect at Kilimani Police Station for seven days while investigators complete their work.
Next court mention
The court scheduled the case for mention on May 13, 2026.
Investigators will present a progress report on the crypto investment fraud investigation.
