Table of Contents
TL;DR,
- INTERPOL’s “Operation Catalyst” cracked down on crypto terrorism financing across six African nations, uncovering $260M in suspicious flows and leading to 83 arrests.
- The operation succeeded by combining law enforcement with blockchain intelligence from private firms like Binance, allowing investigators to trace illicit funds used for recruitment and radicalization.
- In response to these threats, African countries like Kenya, Nigeria, and South Africa are rapidly implementing stricter regulations and VASP frameworks to close compliance gaps and prevent criminal abuse of crypto.
A coordinated sweep led by INTERPOL and AFRIPOL zeroed in on 83 individuals connected to crypto terrorism financing, cybercrime, and money laundering across Angola, Cameroon, Kenya, Namibia, Nigeria, and South Sudan.
Operation Catalyst, which ran from July through September 2025, uncovered approximately $260 million in suspicious flows, seizing only $600,000. What could be considered a win for law enforcement reminds us that cryptocurrencies have become a major transaction medium for criminals, and their rate steadily grows in Africa.
INTERPOL crypto crackdown: Operation Catalyst at a glance
According to Operation Catalyst, out of 15,000 screenings, 160 persons of interest were identified, and only 83 have been taken into custody. The offenses spanned various intertwined crimes, with cryptocurrencies being the primary medium of finance. What could only be considered extremist networks comprise 21 terrorism-related arrests, 28 tied to financial fraud and money laundering, 16 linked to cyber-enabled scams, and 18 related to the illicit use of virtual assets.
Assisting the INTERPOL crypto crackdown were three key private sector entities: Binance, Moddy’s Analytics, and Uppsala Securities, who provided crucial blockchain intelligence tools and risk analysis. The operation was funded under Germany’s ISPA program, with AFRIPOL executing regional operations. INTERPOL Secretary General Valdecy Urquiza stated:
“This is the first time financial crime, cybercrime, and counter-terrorism units from several African countries have joined forces with Interpol and Afripol. By sharing intelligence, expertise, and resources, we can more effectively identify and disrupt the financial flows that support terrorist activities.”
Amb. Jalel Chelba, AFRIPOL Executive Director, stated:
“This operation demonstrates the power of coordinated African action in dismantling terrorism-linked financial networks.”
The blockchain forensic services enabled authorities to identify transaction patterns and contend with money laundering.
Kenya’s crypto trail and anti-money laundering requirements
The investigation found important information that showed Kenya was at the heart of the crypto terrorism financing scheme. There were about $430,000 in illegal transactions found in the country that were linked to recruiting terrorists and radicalizing people.
Interpol and Afripol crackdown on illicit crypto inflows in Africa.[Photo: Youtube]
It’s a troubling evolution of finance. Blockchain’s pseudonymous nature results in many extremist groups relying on digital assets as their financial infrastructure, prizing the speed and anonymity such groups work under.
Despite the stark revelation, Kenya has already set up guardrails via its clear virtual asset regulatory framework. The Virtual Asset Service Providers Bill 2025, which passed in October 2025, set up two levels of oversight: the Central Bank of Kenya for stablecoins and the Capital Market Authority for exchange brokers. This ensures that each digital asset provider maintains regulatory governance, KYC, and penalties for non-compliance. Its tighter anti-money laundering requirements reflect the continental shift bringing VASPs under formal supervision.
Country-by-Country: The INTERPOL Crypto Crackdown Results
The operation’s impact varied significantly across participating nations, with each country uncovering distinct patterns of criminal activity:
Aside from Kenya, several key regions also showcased quite the findings. In Angola, authorities detained 25 individuals of multiple nationalities following investigations into informal value transfer systems connected to crypto terrorism financing. The inspectors examined 30 commercial establishments, seizing $588,000 in cash alongside 100 mobile phones and 40 computers. Additionally, authorities also froze 60 bank accounts linked to the networks.
In Nigeria 11 suspected terrorists were detained, including high-level members. The EFCC and the Central Bank of Nigeria have doubled their efforts to identifysuspicious transfers, especially those involving cryptocurrencies. As Africa’s largest crypto markets, the vulnerability to crypto terrorism financing is at an all-time high. Previously reported by Web3Africa, the CBN also identified $2 million worth of crypto transactions; the investigations are tied to numerous EFCC cases over how digital assets have eroded monitoring capabilities.
In Cameroon, Namibia, and South Sudan, several individuals were detained in relation to cross-border financing networks and illegal value transfer operations; however, the exact number is not mentioned in official statements.
According to Operation Catalyst, out of 15,000 screenings, 160 persons of interest were identified, and only 83 have been taken into custody. [Photo: Interpol]
What patterns are emerging in crypto terrorism financing?
Operation Catalyst isn’t a solitary operation; Interpol has had a history of cracking down on crypto Ponzi schemes that mimic legitimate trading platforms. Throughout its operations, atleast 17 countries (including Cameroon, Kenya, and Nigeria), with more than 100,000 victims and an estimated $562 million in losses.
Their investigations found several high-value wallets with characteristics consistent with extremist finance methodologies. Currently a Red Notice was issued in a separate $5 million scam whose funds were rapidly obfuscated across addresses and exchanges.
According to Chainalysis, estimated illicit activities in Africa are around 1.4%, with layered security improving over time. Criminal actors often favor decentralized exchanges ($22 billion laundered per Elliptic), which are undetectable, but in Africa, CEXs are predominant. Microsoft’s 2025 Digital Defense Report found cybercrime losses more than doubled from $192 million to $484 million in a year, with victims rising to 87,000.
Back in 2024, Nigeria’s EFCC arrested 792 individuals in the Eagle Fluster Operation, which involved cyber fraud in the region. Digital assets worth $222,729 were frozen, and the investigations were tied to the Conti.VIP Ponzi scheme, where crypto sellers received $2.39 million in total through peer-to-peer trading.
Previous major fraud cases have devastated African investors. Mirror Trading International defrauded victims of between $588 million and $1.7 billion from 2019 to 2020, while Africrypt allegedly disappeared with $3.6 billion worth of bitcoin in April 2021.
FOLLOW UP: CBN compliance Department Introduces Proactive Measures Against Financial Crime
Policy outlook: compliance milestones and collaboration
In light of the INTERPOL findings, Africa’s regulatory policies are catching up. Nigeria and South Africa are officially off the Financial Action Task Force (FATF) grey list in October 2025, showcasing stronger framework adjustments. Nigeria, once known for prohibiting cryptocurrency, has now established a regulated entity, SEC, under its Investment and Security Act 2025. South Africa’s FSCA has established comprehensive crypto licensing requirements and additional requirements like its Travel Rule. Now both regions have integrated AML/CFT supervision.
Approximately 26% of peer-to-peer crypto transactions in Nigeria operate outside regulated channels, according to the country’s Economic and Financial Crimes Commission. Following new regulations, a potential crypto license could be underway. This regulatory opacity enables criminals to obscure the identities of transacting parties, creating persistent vulnerabilities for fraud and money laundering.
As virtual assets become increasingly integrated into African financial systems, the imperative for stronger virtual asset regulatory framework implementation grows. The INTERPOL findings, however, showcase how Africa is finally cracking down on crypto-related crimes.
