Detectives have arrested a man suspected of defrauding an investor of KSh4.95 million through alleged promises to invest the money in foreign exchange (Forex) and cryptocurrency trading.
The suspect, Harrison Njeru Muthika, was arrested by detectives from the Nairobi Regional Headquarters following investigations into a complaint filed by a man who claimed he had lost the money after entrusting it to him for investment.
According to investigators, the complainant transferred a total of KSh4,950,000 to the suspect through several transactions between April 30 and July 2, 2025. The money was allegedly handed over on the understanding that it would be invested in Forex and cryptocurrency trading.
However, the matter was reported to authorities, prompting detectives to launch investigations into the alleged financial dealings.
The case was subsequently reviewed by the Office of the Director of Public Prosecutions (ODPP). Following the review, a court issued an arrest warrant, paving the way for the suspect’s apprehension.
Muthika is being held in custody pending his arraignment at the Milimani Law Courts, where he is expected to face several charges relating to the alleged scheme.
The charges are expected to include cheating, operating an unapproved collective investment scheme, fraudulently inducing trading in securities, and acquiring or using proceeds of crime.
The allegations are yet to be tested in court, and the suspect will have an opportunity to respond to the charges through the legal process.
The case highlights the financial risks associated with investment arrangements that promise to generate returns through Forex and cryptocurrency trading.
Authorities have continued to urge members of the public to exercise caution before committing money to investment ventures, particularly those involving digital currencies and other complex financial products.
Potential investors are encouraged to verify the credentials and regulatory status of individuals or companies offering investment services, understand how their money will be managed and seek independent advice where necessary.
The Directorate of Criminal Investigations has reiterated its commitment to pursuing financial crime cases and ensuring that suspects are brought before the courts to answer to allegations against them.
