A Brazilian cryptocurrency fraud operation that began in 2017 collapsed in 2018, resulting in hundreds of millions of shillings in losses for Kenyan investors, according to reports. The scheme, led by Brazilian fraudster Ricardo Rocha, targeted cryptocurrency enthusiasts through promises of high returns and luxury travel incentives.
Esther Muthoni, a Nairobi-based businesswoman, invested Sh3.2 million in the scheme, only to lose her life savings. Her friend Lucy Kamatu also lost Sh550,000 through the operation. Both described feelings of desperation after their investments vanished.
The scheme, operated under the name Velox 10 Global, charged a $100 membership fee with promises of daily earnings up to $4,000. Investors were instructed to transfer funds to accounts controlled by local agents like Daniel Karobia Gichuki, who advised them to mislabel transactions as "payment for work done." The company launched at Nairobi's Hotel Intercontinental on September 20, 2017, but was not registered in Kenya until January 25, 2018.
Central Bank of Kenya Governor Njuguna Ndung’u warned against cryptocurrency investments at the time. Velox 10 Global's website, veloxglobal.com, was reportedly a dummy page, while velox10.com was later put up for auction. A 2018 court case filed by seven investors alleged the company operated without proper licensing and violated regulations by handling non-financial assets.
Daniel Karobia Gichuki, who managed transactions for the scheme, was arrested for fraud but claimed he was also a victim. His case remains pending, while investigations into the scheme continue, according to police sources.
