Cryptocurrency fraud is emerging as a growing challenge for digital finance across Africa, prompting cryptocurrency exchange Binance to strengthen cooperation with law enforcement agencies to trace stolen funds, dismantle scam networks and bring suspected perpetrators to justice.
The company says its specialist investigation teams are working with police across the continent to track the movement of funds linked to online scams, helping investigators follow digital transactions that may cross borders and move through multiple financial platforms.
Online fraud schemes often begin with fake cryptocurrency investment opportunities promising unusually high returns, fraudulent job advertisements, impersonation of government officials or messages designed to deceive victims into transferring money. Once payments are made, criminals may quickly move the funds through multiple accounts and platforms, making recovery difficult for victims.
The growing use of digital payments and mobile money services across African markets has also created new challenges for investigators seeking to establish connections between victims, financial intermediaries and suspected criminal networks.
Binance says blockchain transaction records can help investigators follow the movement of cryptocurrency and identify wallets associated with suspicious activity. When law enforcement agencies submit formal requests through established legal channels, the company’s investigation teams can provide relevant information to support ongoing cases.
Cross-border operations target online scams
The importance of cooperation between cryptocurrency platforms and police was demonstrated during Operation Red Card 2.0, a coordinated law enforcement operation conducted between December 2025 and January 2026.
According to Binance, the operation involved INTERPOL and AFRIPOL, the African Union’s mechanism for police cooperation, across 16 African countries. The company said it supported investigators in tracing payments made through mobile money services to a scam network, contributing to operations that resulted in 651 arrests.
The operation highlights the importance of cooperation between financial technology companies and law enforcement agencies as online fraud increasingly involves multiple jurisdictions and payment channels.
For African authorities, tracing funds across different platforms can be particularly challenging when suspected criminals exploit differences in national regulations, investigative capacity and cross-border information-sharing procedures.
Cryptocurrency transactions can leave a permanent record on public blockchains, potentially allowing investigators to follow the movement of assets between wallet addresses. However, identifying the person behind a wallet and establishing criminal liability generally require additional investigative evidence and, where necessary, cooperation with relevant service providers.
Larry Cooke, Director at Binance Africa, said the company’s role includes helping investigators understand how money moves through digital platforms while strengthening measures to prevent criminals from exploiting its services.
“Prevention is still the best defence but where police enforcement is in action, our role is to help investigators navigate how money moves through digital platforms,” Cooke said, adding that cooperation between investigators and law enforcement agencies can help cases progress towards meaningful outcomes.
Prevention and consumer awareness
Alongside investigations, Binance says it is strengthening monitoring systems to identify suspicious activity and prevent illicit funds from reaching its platform.
The company reported that it had reduced the amount of money linked to crime reaching its platform by 96 per cent since 2023. The figure is a company-reported measure and does not represent the overall reduction in cryptocurrency fraud across Africa.
Consumer education remains another important component of efforts to combat online scams. Fraudsters frequently exploit limited understanding of cryptocurrency markets, using fake trading platforms, impersonation tactics and pressure to persuade victims to transfer funds.
Binance Academy provides free educational resources explaining how common scams operate and how users can identify warning signs before committing money. The resources are available at https://apo-opa.co/3W0pVxp.
Consumers are advised to verify investment platforms and the identities of individuals offering financial services, avoid guaranteed-return promises, protect their account credentials and never share passwords or verification codes with strangers. They should also be cautious of unsolicited messages urging them to make immediate payments or transfer cryptocurrency to unfamiliar wallets.
Victims of suspected cryptocurrency fraud should preserve transaction records, wallet addresses, messages and payment receipts, then report the incident to the relevant law enforcement agency and financial service provider as soon as possible.
As cryptocurrency adoption and digital payments continue to develop across Africa, the effectiveness of fraud prevention will depend on cooperation among police, regulators, financial institutions, technology companies and consumers.
Binance says it intends to continue working with law enforcement agencies to help trace suspicious transactions and strengthen safeguards for users. The broader challenge for African authorities, however, remains ensuring that digital financial innovation is matched by effective consumer protection, cross-border investigations and public awareness.
