Three peer-to-peer Bitcoin traders in Kenya, Emma Kariuki, Stanley Mumo, and Timothy Gachehe were arrested and arraigned in court for allegedly conducting a banking fraud. The trio Bitcoin traders were detained for alleged illegal transactions traded on Localbitcoins.com.
The Milimani Law Courts in the capital Nairobi charged the three with conspiracy to commit a felony and were released on a cash bail of Ksh. 500,000 ($4,840) on Wednesday, Nov. 22. It is being alleged that the trio traded at Localbitcoins on the user account ‘BADASS20′, an account that is barely three weeks old, and conducting a Ksh. 10 million ($96,805) banking fraud.
The authorities then followed the money trail, which led them to three local bank accounts held by the trio. The authorities allege the trio stole the money from Safaricom Pay Bill Number 517822 and I&M Bank. They then channeled the money through Bitcoin transactions, which the trio sold, via the peer-to-peer Bitcoin lending platform.
It is alleged that user BADASS20 paid for the transactions in excess by Ksh. 96,000 ($929), then Emma was asked to send the remaining balance to a local bank account. On the …read more
Read more here:: Bitcoin Traders arrested in Kenya