Bidco Africa Loses KES 102 Million to Unlicensed Crypto Scam

When Kenya's shilling hit its worst stretch in a generation in May 2023, banks were rationing dollars, and importers were limited to $5,000 to $10,000 daily. Bidco Africa's chairman, Dr Vimal Shah, testified that his company needed dollars 'every day' for raw materials, and he relied on his friendship with Nicholas Nesbitt, a former CMA chairman, to facilitate the transaction.

Nesbitt introduced Shah to Mehmet Bulent Boytorun, a British national of Turkish origin who claimed to be a crypto and stablecoin specialist. Shah wired KES 102,437,500 to Bee 'N Bee (KE) Limited, expecting to receive USD 745,000 the next day. However, no dollars were delivered.

Investigations revealed that Bee 'N Bee was not licensed under the Capital Markets Act to conduct such transactions, and Pershing VC Group, the downstream vendor, was also unlicensed. Bidco's money moved through a corporate pipeline, with some dollars eventually arriving in partial remittances, but USD 445,000 remained outstanding.

The arbitration award, dated February 11, 2025, ordered BNB to pay Bidco USD 445,000 plus interest and costs. The case highlights the risks of relying on unlicensed intermediaries during times of economic uncertainty and the importance of due diligence in business transactions.