Cryptocurrency investors have suffered a $130 million loss as a result of the “Bitcoin Kuwait” investment scheme.
A ‘Bitcoin Kuwait’ crypto investment fraud that collapsed within hours left investors astonished after losing $130 million. The financial swindle is one of the greatest in the nation since computerized trading began, sources said.
Several sites pushed the Solana memecoin, sources said. Over 2,900 investors acquired the token at various rates.
According to CoinMarketCap, the token debuted on January 14 at $0.01293, rising to $0.0193 on January 16. The coin is now worth $0.0006074, down 99% from its introduction.
The anticipated ‘Bitcoin Kuwait’ failed hours after its introduction, costing investors 40 million Kuwaiti dinars ($130 million).
Over three years ago, an unnamed developer launched the token, promising investors profits. However, Kuwait University Computer Science professor Dr. Safaa Zaman revealed the technique. President of the Kuwait Society for Information Security, Dr. Zaman.
Dr. Zaman said the token developers stole investment money and disappeared. These investment frauds target young, novice traders, who were the majority of the victims. Their high returns on investments tempt unskilled traders to suggest others for referral incentives.
She asked what the nation was doing when such a large-scale crime was happening because there is no regulatory structure. “Where is the supervision, law, and fraudster?” she said.
To protect the public from cryptocurrency frauds, the Ministry of Commerce and Industry has not licensed Bitcoin trading in Kuwait.
Dr. Zaman noted that the Central Bank of Kuwait restricts digital asset transactions, but enforcement is poor. Criminals exploit these gaps. She said that some individuals lack financial understanding and would leap at any chance to gain money with these products. According to a recent survey, only gamblers and young people in the nation use crypto, rendering them vulnerable to manipulation.
Dr. Zaman wants digital asset laws from the government. She warned that Bitcoin Kuwait and other scams would grow without legal punishments. She also asked authorities to pursue everyone engaged in the Bitcoin Kuwait fraud, starting with crypto promoters.
She also explained how media and newspapers promote and hype these assets. She accused these sites of pushing novices to join the crypto business. Dr. Zaman said coverage and ads have helped financial scammers take over the business. “The genius behind ‘Bitcoin Kuwait’ worked freely for three years, fooling investors and escaping with millions,” she said.
She mentioned financial difficulties with digital assets, citing a Chinese Bitcoin trader. The bank went bankrupt after terrible losses, she said. The ‘Bitcoin Kuwait’ example is not unique; fraudsters today employ many tactics to commit industrial scams. They make seductive promises and use fake photos and comments to attract victims.
Dr. Zaman also described an engineer who lost 300,000 Kuwaiti dinars ($975,000) to fraudulent digital trading techniques. She said the loss destroyed him, forcing him to liquidate most of his possessions. He may have sold his possessions, but others may have invested all their money, leading to vices and self-harm. She warned that playing with assets without expertise might cost money.
