More than Ksh105 million held in cryptocurrency and local bank accounts has been frozen by the High Court as authorities intensify efforts to track and preserve assets suspected to be linked to criminal activities.
The orders were issued by the Anti-Corruption and Economic Crimes Division after the Assets Recovery Agency (ARA) moved to court seeking the preservation of the funds while investigations continue.
The agency argued that the assets needed to be protected from possible transfer, withdrawal, or disposal before the court determines the matter.
Court records show that the largest portion of the frozen assets is held in cryptocurrency through the Binance platform.
The cryptocurrency holdings amount to about 752,749.70 USDT, valued at approximately Ksh97.3 million.
In addition, around Ksh7.8 million held in local bank accounts was also placed under preservation orders.Justice Rose Ougo certified the matter as urgent and allowed it to be heard ex parte before granting the orders sought by ARA.
The ruling immediately restricted any movement of the funds and placed the assets under court protection pending further directions.
The court specifically barred any transactions involving the identified cryptocurrency wallets.
This includes withdrawals, transfers, conversions, or any other dealings involving the digital assets.
The restrictions also apply to the money held in the respondents’ bank accounts.
According to the court order, the respondents are prohibited from transacting, withdrawing, transferring, or dealing with the specified assets in any manner until the court issues further orders.
The preservation measures are intended to ensure that the funds remain available if they are later found to be proceeds of crime.
The orders were issued under Sections 81 and 82 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), a law that empowers courts to preserve property suspected to have been acquired through unlawful means.
The law allows authorities to seek temporary protection of assets while investigations are ongoing and before any final determination is made regarding ownership or legality.
Court documents indicate that the cryptocurrency holdings account for the majority of the frozen assets.
The increasing use of digital currencies in financial transactions has presented new challenges for investigators and regulators, prompting greater scrutiny of large cryptocurrency holdings where questions arise about the source of funds.
The court also extended the preservation orders to cover any interest, profits, gains, or other benefits that may arise from the frozen assets while the case remains active.
This means that any value generated by the assets during the preservation period will remain subject to the court’s orders.
In addition, the court warned that failure to comply with the preservation orders could attract serious consequences.
Anyone found violating the directives risks being cited for contempt of court, an offence that could lead to imprisonment for up to six months.
The case highlights the growing role of cryptocurrency in financial investigations and the increasing efforts by authorities to trace assets held in digital platforms alongside traditional banking systems.
It also demonstrates how courts are using existing anti-money laundering laws to address emerging forms of asset ownership while ensuring that suspected proceeds of crime are preserved until investigations and legal proceedings are completed.
The latest ruling follows a similar decision made in 2024 when the High Court froze Ksh36.5 million linked to a company that was under investigation for suspected money laundering.
Like the current case, the preservation orders were issued to prevent the movement of funds before the conclusion of investigations and any subsequent court proceedings.
