US uncovers alleged $200m ghost student fraud linked to Kenyan network
NAIROBI, Kenya, Oct 29— US authorities have seized more than $750,000 (about Sh97 million) in cryptocurrency linked to a transnational student financial aid fraud scheme involving Kenyan nationals, in what…
US authorities have seized over $750,000 in cryptocurrency linked to a student financial aid fraud scheme involving Kenyan nationals, according to the Justice Department's Operation Ghostbusters. The operation, announced on Thursday, marks the agency's first international seizure in Kenya. Five defendants face criminal charges in a nationwide investigation into the alleged scheme, which used stolen American identities to obtain federal student aid.
The investigation has identified more than $32 million in losses from similar schemes, with a total suspected value of more than $200 million. Kenyan-based conspirators and US-based money mules received fraudulent student aid refunds and transferred proceeds overseas. Kenyan law enforcement and US authorities are collaborating to pursue suspects and recover stolen funds.
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