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Kuwait Bitcoin Scam Leads to 40 Million Dinar Loss

  • Publish date: Monday، 03 February 2025
Kuwait Bitcoin Scam Leads to 40 Million Dinar Loss

A massive cryptocurrency fraud has rocked Kuwait, leaving investors reeling after 40 million Kuwaiti dinars ($130 million) disappeared within hours. This is one of the largest financial scams in Kuwait’s digital trading history, exposing the risks of unregulated crypto investments.

The Rise and Fall of “Bitcoin Kuwait”

The crisis unfolded with the collapse of a newly launched cryptocurrency called “Bitcoin Kuwait.” Investors poured in millions, only to see the asset crash almost immediately, wiping out their funds.

According to Dr. Safaa Zaman, a professor of computer science at Kuwait University and president of the Kuwait Society for Information Security, the scheme was orchestrated by an anonymous developer over three years. When the cryptocurrency collapsed, the mastermind behind it vanished, leaving thousands of victims—most of them young and inexperienced traders.

Kuwait Bitcoin Scam Leads to 40 Million Dinar Loss

Regulatory Failures and Investor Vulnerability

Despite Kuwait’s Central Bank banning digital currency transactions and the Ministry of Commerce and Industry refusing to license Bitcoin trading, scams like this continue to thrive. Dr. Zaman criticized weak enforcement, questioning:

“Where is the oversight, where is the legislation, and where is the fraudster?”

She also pointed out that a significant portion of Kuwait’s crypto traders are young individuals or gambling enthusiasts who lack financial literacy. A study she conducted found that nearly 60% of Kuwaiti cryptocurrency traders fall into this category, making them easy targets for fraud.

Calls for Stricter Laws and Media Accountability

Dr. Zaman has urged the government to criminalize cryptocurrency transactions to prevent future scams. She also called for legal action against influencers and intermediaries who promoted “Bitcoin Kuwait” over the past three years, whether directly or through digital platforms.

Additionally, she criticized local media for fueling public enthusiasm around crypto investments. By glorifying digital assets without discussing their risks, newspapers and online platforms may have contributed to an environment where fraud flourished.

Kuwait Bitcoin Scam Leads to 40 Million Dinar Loss

A Growing Trend in Digital Scams

The “Bitcoin Kuwait” scandal is part of a broader trend of sophisticated digital fraud. Cybercriminals now use fake websites, hacked social media accounts, and even fraudulent celebrity endorsements to lure victims.

One Kuwaiti engineer reportedly lost 300,000 dinars ($975,000) in a similar scam, forcing him to sell off most of his assets. Dr. Zaman warned that even small-scale investments in unregulated digital currencies could lead to devastating financial losses.

What’s Next?

This incident highlights the urgent need for stricter regulations, better financial education, and stronger enforcement against cryptocurrency fraud. Unless authorities step up, scams like “Bitcoin Kuwait” will continue to deceive and bankrupt unsuspecting investors.

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