Justice Department seizes $750,000 in Kenyan crypto account in student-aid fraud case

The US Department of Justice has charged five individuals as part of Operation Ghostbusters, a probe targeting large-scale student-aid fraud tied to a Kenyan network. Authorities announced the seizure of over $750,000 from a cryptocurrency account held by a Kenyan national allegedly linked to the scheme. This marks the Fraud Division’s first international crypto account seizure involving Kenya, and the operation spans cases in New Jersey, Virginia, and Nebraska. Investigators allege that the fraud ring relied on stolen US identities to create fraudulent Federal Student Aid accounts through fake FAFSA applications. “Ghost students”—individuals who do not actually attend school—were enrolled with the purpose of diverting loan and grant refunds into accounts controlled by foreign actors and US-based accomplices, including Kenyan nationals.

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