Kenya arrests alleged mastermind in $431,380 USDT gold scam

The Directorate of Criminal Investigations (DCI) reported that detectives arrested Mildred Kache, who also uses the name Sabreena Ayesha, at Crystal Villas in Kilimani, Nairobi. Kache is being held at the DCI’s Nairobi Regional Headquarters pending arraignment. An alleged accomplice, identified as Ibrahim Yusuf Mohamed, fled before officers arrived and abandoned a black Mercedes‑Benz E50, which has been seized as an exhibit.

According to the DCI, the suspects told a U.S. investor they could supply 400 kilograms of gold bars. The investor flew to Nairobi to sign an agreement and transferred 431,380 USDT into bank accounts controlled by the group. After the funds were received, the alleged dealers stopped responding and no gold was delivered. Forensic leads from the transaction trail led detectives to the Kilimani apartment where Kache was arrested.

Investigators highlighted a mismatch between the amount paid and the promised volume of gold. At current market rates, 400 kilograms of gold would be worth far more than 431,380 USDT, a discrepancy investigators say should have prompted additional scrutiny.

The DCI is tracing the stolen funds and pursuing Mohamed. Officials have not confirmed whether any of the 431,380 USDT has been located or frozen on the blockchain. Whether on-chain assets can be seized will affect how much the investor may recover.

Investigators linked Kilimani to a pattern of similar scams that target foreign nationals. In those cases, operators staged polished meetings, produced what appeared to be legitimate contracts, then disappeared after payments cleared. Investigators noted that stablecoins such as Tether (USDT) are commonly used in cross-border fraud because transfers settle quickly and are difficult to reverse.

Kenya is finalizing its first dedicated cryptocurrency law, which would expand reporting duties for suspicious flows and could give authorities additional tools to track and freeze illicit crypto transfers. Kache is due to make her first court appearance in the coming days as the investigation continues.