Kenya's Assets Recovery Agency (ARA) has frozen at least $888,030 (115 million Kenyan shillings) in cash and Tether (USDT) as part of an investigation into a multi-layered money laundering operation. The frozen amount includes $751,853 in USDT specifically tied to a Binance wallet probe.
The frozen assets
The ARA's action covers both physical cash and the stablecoin Tether, which is pegged to the US dollar. The $751,853 in USDT was traced to a Binance wallet, suggesting the cryptocurrency exchange played a role in the alleged scheme. The total frozen sum is equivalent to 115 million Kenyan shillings.
The investigation
Two Kenyan residents are under scrutiny. They are accused of using multiple parallel channels to move money and avoid detection. The ARA describes the operation as multi-layered, indicating a sophisticated effort to layer transactions and obscure the origin of funds.
Cryptocurrency's role
The use of Tether, a stablecoin often used for cross-border transfers, highlights how digital assets are being exploited in illicit finance. The Binance wallet probe suggests the exchange was a conduit for the funds. The ARA has not said whether Binance is cooperating with the investigation.
The case adds to a growing list of crypto-linked money laundering probes in East Africa. Kenya has been tightening its anti-money laundering framework, and the ARA has been active in freezing assets tied to financial crime.
The agency has not disclosed further details about the suspects or the full scope of the operation. The investigation remains ongoing.
