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DOJ indicts Kenyan-linked student-loan fraud scheme, seizes $750,000 crypto

By Drooid · Oct 30, 2026 · How we work

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Summary

The U.S. Department of Justice’s National Fraud Enforcement Division announced indictments in a large-scale student-loan fraud scheme involving Kenyan nationals.
Five defendants created fraudulent FAFSA accounts with stolen U.S. identities to enroll ghost students in schools.
After grant distribution, funds were diverted to foreign-controlled bank accounts through U.S.-based money mules.
The DOJ seized more than $750,000 in cryptocurrency tied to the Kenyan-linked network.

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The U.S. Department of Justice’s National Fraud Enforcement Division announced indictments in a large-scale student-loan fraud scheme involving Kenyan nationals.
Five defendants created fraudulent FAFSA accounts with stolen U.S. identities to enroll ghost students in schools.
After grant distribution, funds were diverted to foreign-controlled bank accounts through U.S.-based money mules.
The DOJ seized more than $750,000 in cryptocurrency tied to the Kenyan-linked network.