Admit it.You’ve been scammed before.Especially in the crypto industry, Entire families have emptied their sold land, taken bad loans only to see everything disappear. When victims stay quiet out of shame, scammers reuse the same playbook over and over again, targeting the next wave of hopeful who will also be conned into silence, continuing the vicious cycle of crypto scams in Kenya.  Here are some of the most painful stories

1) CBEX: “AI trading” that emptied wallets

CBEX, short for Crypto Bridge Exchange, marketed itself as a smart AI platform. People were told they could get 100 percent returns in thirty days. Then withdrawals froze and users were asked to pay “verification fees” they never saw again. Regulators in Nigeria even warned the public, multiple reports show that a lot of Kenyans were among the victims.
People “I still drive my Ferrari while some of you can’t afford to eat”.

Read more: Mariblock’s wrap on CBEX’s collapse (Apr 16, 2025), Nigeria SEC alert on CBEX, The EastAfrican on CBEX “rebooting,” France24 and The Jakarta Post on the scam’s playbook, and Elliptic’s analysis of its cross-chain laundering. MariblockSEC NigeriaThe EastAfricanFrance 24The Jakarta PostElliptic

2) BTCM: “Mining” that never mined

BTCM pushed a fake Bitcoin mining story with wild returns and heavy referrals. People invited friends, squads, whole family trees. Then the site vanished and withdrawals were blocked. Kenyan tech outlets and Mariblock documented the collapse and the warning signs.

Read more: Mariblock’s explainer on BTCM and Techweez’s scam warning. MariblockTechweez

3) Bitstream Circle: daily 5 to 8 percent “rewards”

This one blew up on Telegram. Kenyans were promised daily profits, then woke up to losses and a cocky message from promoters. Coverage estimates losses in the tens of millions of dollars, with thousands of victims across several countries. 

Read more: Kenyan Wall Street and Bitcoin.com on the scam, BitKE’s Kenya numbers, and a press summary of higher loss estimates. Kenyan Wall StreetBitcoin NewsBitcoin KEEIN Presswire

4) “Argo Coin” and other impersonators

Scam pages pretended to be linked to Argo Blockchain, a legit UK company, and lured Kenyans via WhatsApp groups with small “starter” deposits. The real company and regional reporters flagged that these imposters had no connection to the actual firm.

Read more: Mariblock’s scam alert on fake “Argo Kenya” and a note on WhatsApp impersonation risks. MariblockWhatsApp Help Center

Why people still fall for it

Scams work because they feel familiar. They use friendly DMs, local slang, screenshots of “profits,” and invite-only groups that make you feel special. Add in hype words like AI, staking, mining, arbitrage, and people stop asking basic questions. That is the point.

Spotting the con fast

• Crazy returns in a short time = run. If it says daily profit or 100 percent in a month, that is a huge red flag. Bitstream and CBEX sold exactly that fantasy. 
• Referrals are the real product. If earnings mostly depend on recruiting people, you are the product. BTCM leaned hard on referrals.
• No real company behind it. Check if the entity is registered and where. The Nigeria SEC literally told the public to avoid CBEX.
• Contract and custody questions. Who holds the keys and the liquidity? Independent audits and transparent ownership matter. CBEX’s laundering across Tron and Ethereum was designed to hide flows, not protect users.
• Platform identity checks. Be suspicious of WhatsApp groups and copied brand names. Even legit brands warn about impersonators.

What Kenya needs next

1. Better literacy at scale. Media and schools should teach crypto risk the same way they teach road safety. Interpol’s recent Africa-wide cybercrime operation shows how big the problem is.
   
2. Clear rules that protect users. Proper VASP licensing and strong enforcement make it harder for Ponzi platforms to operate in the open.
   
3. Real reporting channels. If you get hit, report to DCI right away. Kenyan authorities do pursue crypto fraud rings when there is evidence.
   

Quick checklist before you send money

• Can you find the company in a government registry and a real office you can visit
  
• Is there an independent audit or do they just drop buzzwords like AI and arbitrage
  
• Do withdrawals work for everyone, not just early promoters
  
• Would you still “invest” if there were zero referral rewards
  
• If the site disappeared tonight, do you have any legal path to recover funds
  

Lets face it. These people are never getting their money back. No arrests are ever made, and  the orchestrators are always getting away. The whole system will feel rigged against you. But through dyor, reading blogs like this one and checking in with communities, you’ll be fine. Mostly.

These scams highlight the urgent need for robust crypto regulation and financial literacy initiatives in Kenya. In many ways, our legislation is still behind on regulation. But things are moving fast. Check how Kenya is doing this in our recent podcast.

Take care!