From I&M Bank and a Safaricom Pay Bill account was stolen 10.2 million KEH (approximately $100,000). In the course of the investigation the police detained three peer-to-peer LocalBitcoins brokers. They was selling bitcoins to the individual who was attempting to launder the funds. But a real thief was a user LocalBitcoins who named BADASS20.
Traders say they did not know who this user is, and that he wants to launder the stolen money. These data are confirmed by correspondence to LocalBitcoins chat. However, the investigative commission for investigating fraud in Kenya (BFIU) froze the bank accounts of these traders, they were also arrested, but then released on bail.
Strangely, BADASS20 was not identified or arrested, although transfers showed his / her bank account. The profile on LocalBitcoins was still active, although it was not visited for a week. Other users have left negative reviews, warning other users that you can not trade with this account.
This case can set a negative precedent for bitcoin Kenian traders if the government prosecutes these bitcoin traders for bank fraud only though they were unaware of the theft and their only connection to the perpetrator was through LocalBitcoins. Also it could have a negative effect on the Kenian cryptocurrency industry.