$130 million lost in one of biggest crypto scam in Kuwait
$130 million lost in crypto scam in Kuwait
In a shocking turn of events, cryptocurrency investors in Kuwait have lost a staggering $130 million in what is being described as one of the largest financial scams in the country’s history.
The fraudulent scheme, known as Bitcoin Kuwait, was a Solana-based memecoin that lured in over 2,900 investors with promises of high returns, according to the Cryptopolitan.
The token launched on January 14 at an initial price of $0.01293 and briefly climbed to $0.0193 before plummeting to nearly zero. Within hours, the project collapsed, and its anonymous creators disappeared, taking millions in invested funds with them.
A lack of oversight fuels crypto scams
Dr. Safaa Zaman, a professor of Computer Science at Kuwait University and president of the Kuwait Society for Information Security, played a crucial role in exposing the fraud. She criticized the lack of regulatory oversight, warning that the absence of legal protections makes Kuwait particularly vulnerable to such schemes.
“The mastermind behind Bitcoin Kuwait operated freely for three years, deceiving investors and disappearing with millions,” Dr. Zaman stated, emphasizing the urgent need for cryptocurrency regulations. She also highlighted that young and inexperienced traders were the primary victims, often enticed by misleading promotions and referral incentives.
While the Central Bank of Kuwait prohibits cryptocurrency transactions, enforcement remains weak, allowing fraudulent projects to flourish. Experts warn that without proper legal measures, similar scams will continue to emerge.
Dr. Zaman has called on authorities to track down and prosecute those involved, including intermediaries who promoted the token. Meanwhile, financial analysts stress the importance of public awareness and financial literacy to prevent future losses in the volatile world of digital assets.
Recently, a family in Brazil fell victim to a violent crypto-related crime as armed criminals invaded their home. The attackers held them hostage, forced a $16,000 transfer, and fled with their phones.
