Kenya’s Directorate of Criminal Investigations (DCI) has frozen an undisclosed number of Binance user accounts, in what officials describe as a widening crackdown on crypto-linked fraud and money laundering, according to senior criminal investigators familiar with the operation who spoke to TechCabal on Monday.
- +Kenyan authorities freeze some Binance accounts in widening crackdown
The move followed complaints on social media on Monday from users who claimed they had been locked out of their accounts with little explanation from Binance.
The move followed complaints on social media on Monday from users who claimed they had been locked out of their accounts with little explanation from Binance.
A section claimed they are unable to access funds tied up in peer-to-peer (P2P) trades—the channel through which most local retail users convert their crypto holdings into cash—alleging frustration and raising questions about transparency during enforcement actions.
In response to affected users, Binance said the restrictions were imposed at the direction of authorities. “We have shared the information of the law enforcement authorities with you, meaning your account has been restricted at the request of law enforcement,” the crypto platform said in one message shared on X and seen by TechCabal.
While Binance told affected users the freezes were on the orders of authorities, it remains unclear whether the investigative agencies obtained court orders as required under the Proceeds of Crime and Anti-Money Laundering Act. The law mandates judicial oversight for asset freezes linked to suspected illicit proceeds.
“Binance is aware of recent conversations regarding account access. Account restrictions may occur for a range of reasons, including adherence to applicable laws, regulatory requirements, and our internal compliance policies,” a Binance spokesperson told TechCabal in an email on Tuesday. “In certain circumstances, actions may also be taken in accordance with requests from relevant authorities.”
The National Police Service and the DCI did not immediately respond to requests for comments.
The Prevention of Terrorism Act allows immediate freezes—without prior notice—against individuals or entities flagged by counter-terrorism authorities, a provision that agrees with what the investigators told TechCabal about some of the targeted accounts being linked to suspects flagged in terrorism financing probes.
One of our sources said some of the affected accounts had been flagged by authorities in other jurisdictions over suspected links to terrorism financing and money laundering. Others, the officer added, are believed to be tied to corrupt local officials who have channelled and warehoused millions of shillings through the platform.
“Some of these accounts are being used to move stolen taxpayer funds, and we are seeing an increase as the election period approaches,” the officer said.
A second officer said the operation is likely to widen in the coming months, even as Kenya awaits the rollout of implementing regulations for the Virtual Asset Service Providers Act, legislation passed in 2025 to bring crypto exchanges and intermediaries under formal regulatory oversight.
“Kenya has committed to coming out of the greylist. Expect more crackdowns,” the senior investigator said.
Financial Reporting Centre (FRC)—the agency mandated to track illicit transactions—has yet to recognise VASPs as reporting institutions. The VASP Act places compliance burdens on crypto firms.
Section 24(e) requires VASPs to implement the AML/CFT/CPF preventive measures, including adherence to targeted financial sanctions. Further, Section 32(2)(e) mandates regulators to provide feedback to providers to help detect and report suspicious activity, provisions that could formalise the kind of account restrictions now unfolding.
Kenya hopes that the push for oversight of virtual assets will help it exit the Financial Action Task Force “grey list,” with the expected regulations bringing crypto firms into formal regulation and aligning the country with global anti-money laundering standards.
Kenya’s virtual assets market has grown on the back of strong retail adoption, with users joining during successive digital asset booms, drawn by the promise of fast returns and frictionless cross-border payments. Estimates suggest over four million Kenyans have had exposure to cryptocurrencies, many operating through peer-to-peer channels that sit outside regulators’ eyes.
