Duhok authorities arrested two individuals linked to a $15 million cryptocurrency scam. The suspects operated an electronic currency business and were detained after multiple fraud complaints from locals. This case marks a notable instance of financial fraud involving cryptocurrencies in the region, which has banned such transactions.
In Duhok, Iraqi authorities have apprehended two men implicated in a fraudulent scheme amounting to $15 million involving cryptocurrency. Local security officials reported that these arrests took place on Tuesday. The suspects were reportedly overseeing a business that engaged in electronic currency transactions, notably Bitcoin, allegedly swindling funds from numerous local citizens who lodged complaints against them.
A security source indicated that these arrests came on the heels of multiple allegations of fraud attributed to the company run by the suspects. The investigations are still underway to reveal more about this operation, which authorities claim is one of the first incidents of its kind—financial fraud linked to cryptocurrencies—witnessed in the region.
Tensions surrounding cryptocurrency regulations have been high in the Kurdistan Region. The region’s Security Council had proactively issued a restriction against all cryptocurrency-related activities, cautioning that both individuals and companies falling afoul of this directive would face serious legal repercussions, including possible arrest.
This incident echoes a wider trend wherein ten countries, Iraq among them, have moved to prohibit cryptocurrency transactions due to various regulatory and security issues that remain a concern. This crackdown aims to prevent potential financial fraud and protect local citizens from predatory schemes engaged in by those seeking to exploit the cryptocurrency market.
