Ethiopian authorities have arrested two dozen owners and associates of a major sports-betting operator suspected of siphoning off more than 100 billion birr (US$1.7 billion) in state revenue, the National Intelligence and Security Service (NISS) said on Thursday.
NISS said a sweeping probe into licensed and unlicensed betting firms as well as local fintech intermediaries that process payments uncovered widespread violations, including operators continuing business after losing their licences, running offshore-based platforms and using international networks to evade oversight.
Investigators allege the companies, working with domestic payment processors, concealed vast sums that should have been taxed or routed into state accounts, underreported betting turnover and moved profits abroad through cryptocurrency and foreign money-transfer channels.
The agency said several fintech firms licensed by the central bank helped mask transaction volumes by invoking client-confidentiality rules.
A coordinated operation by NISS, federal police, the Financial Security Service and local security units in Addis Ababa and Dire Dawa led to the detention of 24 suspects. Many operators had abandoned registered offices, used foreign-developed software and employed associates of multiple nationalities, complicating detection efforts, NISS said.
Part of the diverted funds was allegedly channelled into terrorism financing, money laundering and anti-government activities, casting the network as a threat to Ethiopia’s economic and national security.
Authorities urged citizens to report suspicious financial activity as the investigation continues.
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