Tag: cryptocurrency scam Kenya

  • Was It A Hack or Rugpull? Raila Coin Posts On His Social Media Raises Questions

    Was It A Hack or Rugpull? Raila Coin Posts On His Social Media Raises Questions

    A deepfake video and suspicious cryptocurrency promotion on Kenya’s former Prime Minister’s verified X account exposes the growing threat of AI-powered scams in Africa’s crypto space

    Kenya’s crypto community was stunned on September 18 when former Prime Minister Raila Odinga’s verified X account announced the launch of a national cryptocurrency called “Kenya Token.” The post, viewed by millions before its swift deletion, featured a deepfake video of Odinga endorsing what cybersecurity experts quickly identified as an elaborate scam.

    The Viral Announcement That Disappeared

    Raila’s coin post now deleted.
    Raila’s coin post now deleted.

    The deleted post claimed Kenya was “stepping up to lead Africa into the crypto revolution” with a new digital asset built on the Solana blockchain.

    Accompanied by an AI-generated video of Odinga, the message promised the Kenya Token would improve the country’s financial system and support economic growth, directing users to join a Telegram channel for updates.

    However, the informal tone and promotional language were jarringly inconsistent with Odinga’s typical communication style.

    More critically, no government institution corroborated what would have been a major national announcement.

    The Central Bank of Kenya, National Treasury, and other relevant agencies remained silent.

    On Friday, Odinga confirmed the inevitable: “My social media platforms were hacked. The video circulating is fake and misleading. Kindly ignore it.”

    A Growing African Trend

    This incident mirrors a disturbing pattern across the continent.

    In February 2025, Tanzanian billionaire Mohammed Dewji’s X account was similarly compromised to promote a fake “$Tanzania” token.

    Before the account was recovered, scammers had raised nearly $1.48 million through a deepfake endorsement video.

    The Kenya Token project bore hallmarks of hasty assembly. Investigators discovered the project’s website launched on September 17, just one day before the viral post.

    Despite claims of an imminent launch, no contract address existed, making the project impossible to verify or track.

    The Deepfake Challenge

    The sophistication of the AI-generated Odinga video highlights a growing threat.

    While cybersecurity experts identified inconsistencies in voice patterns and lip synchronization, the quality was sufficient to initially fool many observers. This underscores the urgent need for improved digital literacy as deepfake technology becomes more accessible to malicious actors.

    Kenya’s crypto landscape adds another layer of confusion.

    The country already hosts the Kenya Digital Token (KDT), launched in July 2025, though this legitimate project faces its own scrutiny with a single wallet controlling 60% of token supply.

    Virtual Asset Service Providers Bill

    Kenya’s government has been working toward comprehensive cryptocurrency regulation.

    The Virtual Asset Service Providers Bill, scheduled for second reading on September 23, aims to require crypto firms to establish local offices and comply with regulatory oversight.

    The Raila Token incident may accelerate these discussions, demonstrating how easily bad actors can exploit public figures and create market confusion.

    The Central Bank of Kenya maintains a cautious stance toward cryptocurrencies while exploring a Central Bank Digital Currency since 2022.

    The government has also introduced incentives for legitimate crypto adoption, reducing the digital assets trade levy to 1.5% in the 2025 Finance Bill.

    Lessons for Africa’s Crypto Future

    This incident reveals critical vulnerabilities in Africa’s growing crypto ecosystem.

    Even verified accounts of prominent political figures remain susceptible to sophisticated attacks, while AI-generated content becomes increasingly convincing.

    The absence of clear regulatory frameworks creates space for fraudulent projects to operate, particularly in regions where cryptocurrency adoption is rapidly expanding.

    For users, the case emphasizes the importance of verifying announcements through multiple official channels and understanding warning signs of deepfake content.

    The reliance on Telegram for official communications and the lack of technical documentation should have raised immediate red flags.

    For regulators and platforms, the incident demonstrates the need for enhanced security measures, improved deepfake detection capabilities, and faster response mechanisms for fraudulent activities.

    As Kenya and other African nations develop digital currency strategies, protecting citizens from sophisticated scams becomes increasingly critical.

    The continent’s crypto revolution shows immense promise, from Nigeria’s eNaira to Kenya’s potential expansion of M-Pesa into blockchain technology.

    However, the Raila Token incident serves as a sobering reminder that technological advancement must be matched by robust security measures and public education.

    Whether this was purely a security breach or part of a broader rug-pull strategy remains unclear.

    What’s certain is that as Africa embraces digital currencies, the sophistication of threats targeting the ecosystem continues to evolve.

    The incident highlights how quickly public trust can be exploited in the fast-moving world of cryptocurrency, making vigilance and verification more important than ever.

  • Kenyans Lose Millions in CBEX Crypto Scam, Popular Trading Platform Exposed as Fraud

    Kenyans Lose Millions in CBEX Crypto Scam, Popular Trading Platform Exposed as Fraud

    A section of Kenyans using a popular cryptocurrency and forex trading platform known as CBEX have lost their fortunes after their accounts were mysteriously emptied.

    CBEX had gained rapid traction among users in Kenya, Nigeria, and Egypt by promising incredible returns, fast withdrawals, and referral bonuses that seemed too good to be true.

    But over the weekend, those dreams were shattered when investors logged into their accounts only to find their balances at zero.

    As panic spread, CBEX’s response raised even more red flags—leaving users stranded and accusing the platform of running a sophisticated scam.

    Kenyans Lose Millions in CBEX Crypto Scam, Popular Trading Platform Exposed as Fraud

     

    CBEX Trading Platform Was A New Face of Old Scams

    The CBEX Trading Platform burst onto the scene with flashy promises of 30% returns in just 30 days, powered by what they claimed was “AI-based crypto and forex trading technology.”

    For a population already struggling with rising living costs, the allure of quick, passive income was irresistible. CBEX’s Telegram groups, WhatsApp chains, and social media posts painted a picture of financial freedom.

    Users were promised profits, commissions for referrals, and seamless withdrawals. Thousands jumped in. They deposited their savings—some using their children’s school fees, others pawning assets.

    But this past weekend, reality struck. Dozens of Kenyan users reported that their accounts had been drained. One investor recounted, “Today morning, I had about $6,000 (KSh777,680) in my CBEX wallet. By evening, it had been wiped clean.”

    And he wasn’t alone. “Several of my friends and relatives also lost everything. We are in shock,” he added.

    The hardest hit appeared to be users trading on CBEX’s AI-powered platform, which the company had aggressively marketed as revolutionary. The system, they claimed, could predict market movements with near-perfect accuracy using real-time data and machine learning.

    But when things went south, CBEX shifted blame to an external threat.

    Shifting Blame, Demanding More Money

    In a message sent via Telegram, CBEX claimed that “malicious fraud platforms” had hacked their AI systems, executing trades designed to confuse the AI and disrupt market order.

    They alleged the attackers used “massive full-margin operations” to cripple the system. However, for many affected users, this explanation rang hollow.

    CBEX’s solution? Force victims to pay more money to verify their accounts before any compensation could be processed.

    The platform announced that users with less than $1,000 in their wallets had to pay $100 for verification. Those with more than $1,000 had to cough up $200.

    “After depositing, compensation will be credited within 1-24 hours,” CBEX said.

    In other words, victims were being asked to pay a ransom to access their own money. Those who failed to comply by April 17 at 11:59 PM (UK time) would be permanently banned and marked as scammers, CBEX warned.

    The message left users feeling cornered and furious. Many took to online forums and local digital news platforms to call out the platform’s tactics as fraudulent.

    “If this isn’t extortion, what is?” asked one user on a Kenyan crypto Facebook group.

    Unregulated Platforms, Vulnerable Users

    CBEX’s shady operations highlight the dangers of Kenya’s unregulated crypto and forex market. While over 730,000 Kenyans are active in digital currency trading, there is no firm legal framework to protect them.

    The Central Bank of Kenya has previously warned citizens against using digital currencies, citing risks like fraud, volatility, and lack of recourse in case of disputes. Yet platforms like CBEX continue to operate unchecked, exploiting the regulatory vacuum and Kenyans’ financial desperation.

    “This isn’t the first scam and won’t be the last unless the government takes swift, decisive action,” said a local financial analyst who spoke to us anonymously.

    The Treasury is currently reviewing plans to regulate crypto trading platforms, including mandatory licensing and consumer protection laws. However, these measures may come too late for CBEX victims.

    Meanwhile, those affected are left trying to recover lost savings while CBEX continues to post promotional messages on its channels, trying to lure in new victims.

    Conclusion

    The CBEX Trading Platform has exposed a painful truth—Kenyans are being preyed on by unscrupulous operators hiding behind complex tech jargon and too-good-to-be-true offers.

    As long as the crypto space remains a legal grey area, more people will be trapped in similar schemes. The government must urgently regulate this sector, not just with rules, but with strict enforcement and public education campaigns.

    Until then, Kenyans must remain skeptical of platforms like CBEX that promise sky-high returns with minimal effort. Because when it sounds too good to be true—it probably is.