Police Bust Chinese-Run Cybercime Command Center in Posh Nairobi Estate

Dec 07, 2014 01:17 AM EST

Tujia.com acquired its rival Mayi Duanzu.

(Photo : Nation Media Group) Tujia.com has bought another of its Chinese rivals, Mayi Duanzu.

Police in Nairobi have stumbled upon an elaborate cybercrime command center hidden away in a posh estate, arresting 77 Chinese nationals for hacking, money laundering, and attempting to raid Kenya's communication systems.

The Chinese cybercrime ring was only discovered when police went to the house to investigate a fire caused by an illegally operating server that had killed one of the tenants.

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The police were shocked to find in the upscale Runda estate more than 70 men living in "military-style dormitories," and a room packed with high-tech communications equipment, reports Nairobi newspaper The Standard.

Officers from Kenya's Directorate of Criminal Investigations (DCI) then raided the rented house and arrested several Chinese citizens, reports Kenyan newspaper Daily Nation.

Kenyan police said the men were using the house as a base to hack and money launder, and that they were preparing to raid the country's communication systems. The police recovered sophisticated software capable of infiltrating bank accounts, ATMs, and M-Pesa, which is a mobile-phone based money transfer and microfinancing service.

"The suspects are being interrogated to establish their mission in the country and what they wanted to do with the communication gadgets," DCI Director Ndegwa Muhoro told Agence France Presse. The charges include "being in the country illegally and operating radio equipment" without the necessary permits.

The discovery of the cybercrime network is a politically embarrassing development for China, which just launched a Sino-Africa research center at Jomo Kenyatta University of Agriculture and Technology. The new research center is located less than 17 miles away from where the cybercrime command center was discovered.

Of the 77 Chinese arrested, 37 of them appeared before magistrate Hannah Kaguru, who ruled that they be detained at Gigiri Police Station for five days to help with investigations, reports the Daily Nation. Another 40 of them were charged with illegally operating a radio station in Runda.

(Photo : Fidelis Kabunyi/Standard) Some of the Chinese arrested in the sting appear at Milimani Law Courts.

Several high-ranking Kenyan officials visited the house after the raid and declared the discovery a breakthrough in the fight against cybercrime. The Chinese ambassador to Kenya has been summoned to the Foreign Affairs ministry to explain how - and more importantly, why - Chinese nationals were running such a large, complex communications center in Nairobi.

"We summoned the deputy ambassador and ... made it clear that the Chinese government should fully cooperate on this matter," ICT Cabinet Secretary Fred Matiang'I told the Daily Nation. "China promised to send investigators to work with ours on this matter."

He said the Chinese communications center was behind the recent spate of cybercrimes in the country.

TagsKenyan Police Stumble Upon Chinese-Run Cybercime Network, hacking, Money-Laundering, attempting to raid Kenya’s communication systems, cybercrime command center, Runda estate Nairobi, Ndegwa Muhoro, posh Nairobi estate, Fred Matiang’I