Kenyan investigators have frozen at least $888,030 in cash and USDT as part of an alleged money-laundering operation that authorities say moved more than $2.32 million through shell companies, bank accounts, remittance channels and cryptocurrency wallets. The Assets Recovery Agency, or ARA, says the funds are tied to two Kenyan residents and that its investigation is still expanding.
How much was seized
According to the ARA, the frozen assets total 115 million Kenyan shillings, or about $888,030. Of that amount, $751,853 in USDT was linked to Glory Kithure, while $896 was linked to Michael Machimbo. Investigators also seized $135,000 held across nine bank accounts at more than five banks.
The agency alleges the broader network used layered transfers to hide the source of funds and make tracing more difficult. Court filings cited by the report say the operation relied on two separate but parallel channels.
Remittance and bank transfer route
In the first channel, money allegedly entered Kenya through international remittance services, passing through intermediary individuals and companies before reaching accounts connected to the two respondents. Court records name several intermediaries and identify DigitalMall Global Ltd. and Bitflux Fintech Ltd. as sources of funds.
From October 2022 to January 2024, Machimbo is said to have received roughly $620,000 in Equity Bank accounts from Michael and another intermediary, Kevin Kipngeno. A further $130,000 was allegedly transferred to Machimbo’s Stanbic Bank account from Bitflux Fintech Ltd.
Kithure’s accounts reportedly received 57 transfers totaling $412,000 between July 2022 and May 2025. The individual payments ranged from $77 to about $4,250. Investigators say the relatively small size of the transfers appears designed to stay below Kenyan reporting thresholds. Under Kenyan law, cash transactions of $15,000 or more and cross-border transfers of $10,000 or more must be reported to the Financial Reporting Centre.
Why investigators flagged the pattern
The ARA said the repeated use of amounts below reporting limits is consistent with structuring, a method used to avoid regulatory reporting requirements. In its view, that pattern reflects the layering stage of money laundering. The agency also said the transfers appeared to be broken up and moved gradually through the banking system before being spent, which investigators described as a sign of efforts to integrate funds into ordinary financial activity.
One example highlighted in the filings involved transactions in November 2023. In that instance, Gaturu allegedly received two payments totaling $7,000 from the U.S. payment platform Chime. Those funds were then transferred to Mwendwa’s Equity Bank account and later sent onward to Michael for distribution into Kithure’s account, according to investigators.
Crypto route and international assistance
The second channel identified by the ARA involved tether stablecoins moved through multiple Binance accounts. Investigators allege that routing the crypto through several exchange accounts was intended to break the connection between the funds and their original source.
The probe remains ongoing. Kenyan authorities sent a mutual legal assistance request to the U.S. government in May 2026 seeking international financial records, according to the report.
The case combines conventional banking records, remittance trails and crypto wallet activity, underscoring how investigators say the alleged network used both financial institutions and digital assets in parallel. For now, the frozen funds represent the assets identified by the ARA while the wider investigation continues.
Source: news.bitcoin.com