CRYPTO CRIME | ‘Expect More Crackdowns,’ Kenyan Investigators Reportedly Say Following Binance Account Freezes

Kenyan authorities have frozen an undisclosed number of user accounts on crypto exchange, Binance, as part of a widening crackdown on suspected fraud, money laundering and terrorism financing, according to investigators familiar with the matter.

The action, led by Kenya’s Directorate of Criminal Investigations (DCI Kenya), follows a surge in complaints from users who said they were suddenly locked out of their accounts, with some unable to access funds tied to peer-to-peer (P2P) transactions – a popular channel for converting crypto into cash locally.

Binance told affected users the restrictions were imposed at the request of law enforcement agencies, directing them to contact authorities for further details. The company said account limitations can arise from compliance with legal and regulatory obligations or internal policies, and may include cooperation with official investigations.

A Binance spokesperson reportedly said:

“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.

In certain circumstances, actions may also be taken in accordance with requests from relevant authorities.”

A senior investigator reportedly said that Kenya is committed to getting off the FATF greylist and we can ‘expect more crackdowns’ to ensure that happens.

Kenya is in the process of finalizing VASP regulations with one of the key expectations being exiting the FATF ‘grey list’ that ensures the country aligns with global anti-money laundering and reporting standards for virtual assets.

In order to exit the FATF grey list, jurisdictions to target strategic deficiencies across the national AML/CFT framework, including

• improving supervision of financial institutions,
• enhancing information sharing,
• strengthening criminal asset seizure procedures, and
• boosting the capacity to investigate and prosecute illicit financial activity.

Demonstrated identification, investigation, and prosecution of serious financial crimes with enforced penalties such as confiscation of illicit proceeds is also requirement for getting off the grey list.

It remains unclear whether the freezes were backed by court orders, as typically required under Kenya’s anti-money laundering laws, which mandate judicial oversight for asset seizures linked to suspected illicit activity.

Investigators reportedly said some of the flagged accounts are linked to individuals under scrutiny for terrorism financing and cross-border money laundering, while others are suspected of being used to move proceeds of corruption, including public funds.

The Prevention of Terrorism Act allows authorities to freeze assets without prior notice in cases involving national security, a provision officials said may apply to some of the accounts affected.

The Kenya National Police Service and the national investigative body, DCI Kenya, are yet to comment on these developments.

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