Justice Department Charges Five in Aid Fraud Probe, Seizes More Than $750,000 in Crypto

The Department of Justice (DOJ) announced charges against five people in an alleged federal student-aid fraud scheme and a seizure of more than $750,000 in cryptocurrency from an account tied to the case. The account belonged to a Kenyan national connected to the alleged scheme. Investigators seized the funds in September 2026 with help from Kenyan law enforcement. The cases are part of Operation Ghostbusters, a nationwide investigation into alleged fraud involving stolen identities and federal student aid. Prosecutors allege that people used stolen U.S. identities to enroll fake students, obtain federal aid and move refunds through U.S.-based money mules to associates overseas. Federal aid goes to schools first to cover tuition and fees; any excess can be refunded to students, including through direct deposit.

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