Fraud alert over cryptocurrency falsely linked to Saudi Arabia

The cryptocurrency being peddled by Singapore-based cryptocurrency company. (Supplied photo)
Updated 21 August 2019
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Fraud alert over cryptocurrency falsely linked to Saudi Arabia

  • The website of a cryptocurrency company is promoting what it calls the CryptoRiyal and SmartRiyal
  • The Singapore-based company uses the Saudi emblem of two crossed swords and a palm tree

JEDDAH: Fraudsters are trying to lure victims into investing in a “virtual currency” with false claims that it is linked to the Saudi riyal and will be used to finance key projects, the Saudi Ministry of Finance warned on Tuesday.

The website of a cryptocurrency company in Singapore is promoting what it calls the CryptoRiyal and SmartRiyal, using the Saudi emblem of two crossed swords and a palm tree. Its “ultimate goal” is to finance NEOM, the smart city and tourist destination being built in the north of the Kingdom, the company claims.

“Any use of the KSA name, national currency or national emblem by any entity for virtual or digital currencies marketing will be subject to legal action by the competent authorities in the Kingdom,” the ministry said on Tuesday.

The fraudsters were exploiting ignorance of how virtual currencies work, cryptocurrency expert Dr. Assad Rizq told Arab News.

“A lot of tricks can be played,” he said. “Some of these companies are not regulated, they have no assets, and even their prospectus is sometimes copied from other projects.

“They hype and pump their project so the price goes up. Inexpert investors, afraid of missing out, jump in, which spikes the price even higher. Then the owners sell up and make tons of money.

“Cryptocurrencies are a risky investment for two reasons. First, the sector is not yet fully regulated and a lot of projects use fake names and identities, such as countries’ names or flags, to manipulate investors.

“Second, you have to do your homework, learn about the technology. And if you still want to invest, consider your country’s rules and regulations.”

 


Iraq denies links to drone attack on Saudi oil facilities

Updated 3 min 2 sec ago
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Iraq denies links to drone attack on Saudi oil facilities

  • The operation was claimed by Iran-backed Houthi rebels in Yemen
  • ‘Iraq is constitutionally committed to preventing any use of its soil to attack its neighbors’

JEDDAH: Baghdad on Sunday denied any link to drone attacks on Saudi oil plants, after media speculation that the strikes were launched from Iraq despite being claimed by Yemeni rebels.
The attacks early Saturday targeted two key oil installations, causing massive fires and taking out half of the Kingdom’s vast oil output.
The operation was claimed by Iran-backed Houthi militia in Yemen, where an Arab coalition has been fighting to restore the internationally recognized government.
But the Wall Street Journal reported that officials were investigating the possibility the attacks involved missiles launched from Iraq or Iran.
Kuwait says it is increasing security across the state and is investigating the sighting of a drone over its territory and is coordinating with Saudi Arabia and other countries, the cabinet said on Sunday.
“The security leadership has started the necessary investigations over the sighting of a drone over the coastline of Kuwait City and what measures were taken to confront it,” the cabinet said on its Twitter account.
It said Prime Minister Sheikh Jaber Al-Mubarak Al-Sabah directed military and security officers to tighten security at vital installations in the OPEC producer and to take all necessary measures “to protect Kuwait’s security.”
Separately, state-run KUNA news agency said authorities would investigate reports of drones flying over Kuwait. It did not elaborate.
Local Kuwaiti media has reported that witnesses say they saw a drone near a presidential palace on Saturday morning, around the same time of the attacks in Saudi Arabia.
Some Iraqi media outlets have said Saturday’s attack on Saudi oil facilities came from Iraq, which borders Kuwait. But Baghdad denied this on Sunday and vowed to punish anyone using Iraq as a launch pad for attacks in the region. 
Iraqi Prime Minister Adel Abdel Mahdi on Sunday denied reports Iraqi territory “was used for drone attacks on Saudi oil facilities.”
“Iraq is constitutionally committed to preventing any use of its soil to attack its neighbors,” he said in a statement.
“The Iraqi government will be extremely firm with whomever tries to violate the constitution.”
Iraq is home to several Iran-backed militias and paramilitary factions, placing it in an awkward situation amid rising tensions between its two main sponsors, Tehran and Washington.
United States Secretary of State Mike Pompeo squarely accused Tehran of being behind Saturday’s operation, saying there was no evidence the “unprecedented attack on the world’s energy supply” was launched from Yemen.
Iraq has called for its territory to be spared any spillover in the standoff between the US and Iran, which has included a series of attacks on shipping in sensitive Gulf waters.
Recent raids on bases belonging to Iraqi Shiite paramilitary groups linked with Iran, attributed to Israel, sparked fears of an escalation.
There have been no military consequences so far, but the strikes have heightened divisions between pro-Tehran and pro-Washington factions in Iraq’s political class.
Baghdad has recently moved to repair ties with Saudi Arabia, a key US ally — much to Iran’s chagrin.
Riyadh recently announced a major border post on the Iraqi frontier would reopen mid-October, after being closed for almost three decades.