The Kuwaiti newspaper Al-Qabas reported that Kuwaiti courts received more than 100 cases related to Bitcoin-related fraud and scams during the past year, filed by victims who were robbed of their money by fraudsters.
The newspaper explained that the gangs involved in Bitcoin trading are working to deceive customers by making them believe that they can make huge profits from investing in these currencies, while they steal bank accounts as soon as they obtain customers’ personal data.
According to Al-Qabas report, many cases are still pending without identifying the accused, as these fraudulent operations are carried out from outside Kuwait. However, the authorities were able to identify some of the fraudsters and refer them to the courts.
While the security authorities continue to warn citizens against falling into the trap of financial fraud, some people are increasingly investing in digital currencies in the hope of getting rich quickly.
In this context, a responsible source in the Ministry of Interior confirmed that the ministry is making intensive efforts to arrest cyber fraud gangs, including fraudsters who exploit Bitcoin as a front for their operations. He added that the Cybercrime Department has received dozens of reports from victims who have been defrauded online.
For her part, Dr. Safaa Zaman, head of the Kuwait Information Security Association, revealed the details of a major fraud carried out by an unidentified person using a cryptocurrency called “Bitcoin Kuwait.” The fraudster managed to collect about $40 million in investors’ money within just 24 hours of the currency’s launch, before disappearing completely from sight.
According to Dr. Zaman in a statement to the Kuwaiti newspaper Al-Qabas, the process of preparing this fraudulent scheme took about three years, as the fraudster exploited social media platforms in addition to a website dedicated to promoting the currency. This promotion prompted about 2,900 citizens to invest in it, but they were surprised by the collapse of the currency by 99.9% and the loss of their money.
Dr. Zaman explained that this scheme was carefully and meticulously prepared, as it used a "meme coin", a cryptocurrency that does not rely on any real assets, making it highly volatile and vulnerable to sudden collapse. She pointed out that the lack of legal regulation of the digital currency market in Kuwait allowed such fraudulent operations to occur easily.
Dr. Zaman added that there is an urgent need for clear legal legislation to regulate the trading of digital currencies and protect investors from falling into the trap of increasing fraud. She also called for the establishment of strict control mechanisms to reduce the risks of this type of fraud in the future.
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