How a cryptocurrency scam made millions 'vanish' in Kuwait

A viral cryptocurrency scam has recently rocked Kuwait, with around 40 million Kuwaiti dinars ($130 million) vanishing in just hours.

The fraud, one of the largest in the country’s digital history, followed the sudden collapse of a new cryptocurrency called “Bitcoin Kuwait.”

Young and inexperienced investors, who had heavily invested in this new asset, were left stunned when the coin collapsed shortly after launch.

The scheme, which allegedly spanned three years, was uncovered by Dr. Safaa Zaman, a computer science professor at Kuwait University.

She shared her findings in a viral post on social media platform X, revealing that the creator of “Bitcoin Kuwait” had vanished with the funds.

Despite the Ministry of Commerce and Industry’s refusal to license Bitcoin trading, there are no effective safeguards to protect the public from such scams.

Dr. Zaman pointed out that young traders, many of whom lack financial literacy, are especially vulnerable to such schemes.

She found that nearly 60 percent of cryptocurrency traders in Kuwait are young people and gambling enthusiasts, making them easy targets for fraud.

The story of this viral scam has spread quickly across the country, with many questioning the lack of regulation.

Dr. Zaman has called for urgent legal action to criminalize cryptocurrency transactions, warning that without regulation, scams will continue to spread.

She also highlighted the role of local media in fueling public enthusiasm for digital currencies, arguing that their coverage made it easier for fraudsters to take advantage of young investors.

Dr. Zaman shared the story of a Kuwaiti engineer who lost $975,000 in a similar scheme, stressing that even small investments in cryptocurrency could lead to devastating losses.