Crypto scam: "Bitcoin Kuwait" scam, a costly lesson for young investors

Cryptocurrency scams in Kuwait:

A massive cryptocurrency fraud has shaken Kuwait, leaving young investors in financial ruin. The scam revolved around a newly launched digital coin called "Bitcoin Kuwait," which collapsed shortly after its release. Many inexperienced traders had invested heavily, believing in its potential, only to see their money disappear overnight. This incident has raised serious concerns about the safety of cryptocurrency investments in the country.

The scam was exposed by Dr. Safaa Zaman, a computer science professor at Kuwait University, who spent three years investigating the scheme. She shared her findings on social media, revealing that the creator of Bitcoin Kuwait had vanished with investors' funds. Her post quickly went viral, sparking a nationwide debate on the risks of unregulated cryptocurrency trading. Despite the Ministry of Commerce and Industry's refusal to license Bitcoin trading, there are no strong measures in place to protect the public from such scams.

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Dr. Zaman highlighted that young people and gambling enthusiasts are the most vulnerable to these fraudulent schemes. According to her research, nearly 60% of cryptocurrency traders in Kuwait fall into these categories, making them easy targets for scammers. Many of these investors lack financial literacy and are drawn in by the promise of quick profits. Without proper understanding of the risks, they end up losing large sums of money.

The professor also criticized local media for fueling public interest in digital currencies. She argued that media hype made it easier for fraudsters to manipulate young investors. Many were influenced by exaggerated reports of overnight success stories, leading them to invest without caution. The lack of regulation has allowed such scams to thrive, with no legal consequences for those responsible.

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Dr. Zaman has called for urgent legal action to criminalize cryptocurrency transactions in Kuwait. She warned that unless strict regulations are introduced, more scams will continue to emerge, leaving more people financially devastated. She also shared the heartbreaking story of a Kuwaiti engineer who lost $975,000 in a similar scheme, proving that even experienced professionals are not safe. This case serves as a harsh lesson on the dangers of unregulated digital investments and the urgent need for stronger financial protections.