Crypto investors lose $130 million in Bitcoin Kuwait scam

Investors remain surprised after losing around $130 million in the “Bitcoin Weight” crypto investment scam that collapsed within hours. Financial fraud is one of the biggest scams in the country’s history since digital trading began, according to reports.

According to reports, Memecoin based on Solana has been promoted on several platforms. It is said that more than 2,900 investors have purchased the tokens at various prices.

CoinMarketCap data shows that the token will rise slightly to $0.0193 on January 16th after it was released on January 14th and listed at an initial price of $0.01293.

The planned Bitcoin Wait reportedly collapsed a few hours after its release, with investors losing a cumulative Kuwait Dinar ($130 million).

The token was created by an anonymous developer over three years ago and returned by promising investors. However, the scheme was published by Dr. Safaa Zaman, a professor of computer science at the University of Kuwait. Dr Zaman is also the president of the Kuwait Association for Information Security.

Crypto investors lose significantly on Bitcoin Kuwait Scam

According to Dr. Zaman, the creator of the token disappeared and stole the funds they invested. She said that most of the affected population were young and inexperienced traders who are one of the target audiences of these types of investment scams. They tempt these inexperienced traders with appetizing returns on investments and urge others to bring in for referral bonuses.

She said there was no regulatory framework to prevent crime and asked what the country was doing when such crimes of that scale were unfolding. “Where are the surveillance, where are the legislation, where are the con artists?” she asked.

There has been little movement on the part of the Ministry of Commercial and Industry to obtain a license to Bitcoin trading in Kuwait, but a framework has been introduced to protect the public from these types of cryptocurrency fraud.

Dr Zaman added that while Kuwait’s central bank still bans trading digital assets, efforts to implement these laws are still weak. Criminals use these loopholes to carry out crimes. She also said that there are people who lack the necessary financial literacy and jump on the opportunity to make money through these investments. She added that recent research showed that only gamblers and young people were dabbled in domestic codes and became more susceptible to manipulation.

Dr. Zaman wants cryptocurrency laws

Dr Zaman asks the government to issue digital assets laws. She said that if they fail to implement legal sanctions, fraudulent schemes like Bitcoin Weight fraud will continue to flourish. She also urged authorities to chase and prosecute anyone involved in the Bitcoin Weight scam, and emphasized that they could start with intermediaries who promoted tokens to the general public.

She also discussed the role of media and newspapers in promoting and promoting enthusiasm for these assets. She criticized these outlets for encouraging inexperienced people to enter the crypto industry without the necessary knowledge. Dr Zaman pointed out that reporting and advertising is part of the reason the industry has been overtaken by criminals who commit financial fraud. The ringleaders behind “Bitcoin Kuwait” were run freely for three years, deceived investors and disappeared millions,” she added.

She spoke about past financial issues, including digital assets, citing examples of Chinese companies that traded Bitcoin. She said the bank suffered catastrophic losses that ultimately led to bankruptcy. Meanwhile, the “bitcoinwait” case is not an isolated event as cybercriminals use different ways to carry out fraud in the industry. As long as they lure victims with some sweet offers and use fake images and doctor images and statements.

Dr Zaman also mentioned the case of engineers who lost around 300,000 Kuwaiti dinaars (approximately $975,000) in these fraudulent digital trading schemes. She said the losses broke him, relying on the engineers to sell most of his assets. He had the opportunity to sell his assets, but others may have used their entire funds for investment, even pushing them into other vices and self-harm. She added that experimenting with assets that lack the right knowledge can lead to economic losses.

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