Kuwait extends its prosecution of illegal crypto mining

Kuwait extends its prosecution of illegal crypto mining

Kuwait’s Public Prosecution after detaining 26 individuals, is further investigating another 60 individuals which the prosecution says are involved in illegal crypto mining activities.

According to Kuwait Arab Times the Kuwait Public Prosecutor has detained 26 individuals pending further investigation. The individuals were charges with engaging in unauthorized activities that undermine the country’s interests, while lacking necessary licenses from municipality and the Ministry of Industry and Communications.

The charges are the illicit use of energy to mine cryptocurrency, in violation of state-mandated electricity consumption regulations. According to sources, the defendants denied the charges during their interrogation but were confronted with criminal investigation reports linking them to the incidents and some of the seized devices.

Meanwhile, the Ministry of Interior revealed the seizure of 47 homes in the Ahmadi Governorate, where residents were engaged in cryptocurrency mining, significantly affecting the electricity supply.

The Cabinet has commended the outcomes of an extensive security operation overseen by Acting Prime Minister and Minister of Interior Sheikh Fahad Al-Yousef, Minister of Electricity, Water, and Renewable Energy Dr. Subaih Al-Mukhaizeem, Minister of State for Communications Affairs Omar Al-Omar, and Minister of State for Municipal Affairs and Minister of State for Housing Affairs Abdullatif Al-Mishari.

The Cabinet emphasized that the operation is part of ongoing governmental efforts to combat unlawful activities, safeguard the electricity grid from illegal usage, and ensure public safety. Crypto mining according to government officials exploits electrical resources, leading to increased grid loads, power outages, and disruptions in residential, commercial, and service areas.​

The Public Prosecution, through the Commercial Affairs Prosecution, has ordered the continued detention of several suspects, including property owners who rented out their homes for mining purposes.

Others have been released on bail of 500 Kuwaiti dinars. Investigators have confronted defendants with evidence of substantial deposits in their accounts, some amounting to 3,000–4,000 dinars daily, originating from unidentified sources.

In Al Rai media, sources informed the publication that operations to identify cryptocurrency mining sites are ongoing. Searches are being conducted in areas including Wafra, Sabah Al-Ahmad, and Mutlaa, with no region excluded, The Ministry of Electricity is disconnecting power to properties involved in mining activities, with reconnection contingent upon approval from the Ministry of Interior.​

Additionally, the Ministry of Electricity, in collaboration with the Ministry of Interior, is enforcing penalties for cryptocurrency mining activities based on the previous ban announced recently.

Moroccan authorities make arrests for crypto fraud operation

Moroccan authorities make arrests for crypto fraud operation

Moroccan authorities have arrested five individuals in connection with an alleged cryptocurrency fraud operation.

The suspects, aged between 24 and 48, were detained earlier this week in Salé, following a complaint received through international law enforcement cooperation channels.

As per the news on Hespress, they are suspected of being involved in a phishing scam that targeted foreign citizens by sending malicious emails. The emails were designed to steal the victims’ digital wallet information containing cryptocurrency, which was then converted into cash via their personal bank accounts.

During the investigation, police seized a sum of money believed to be linked to the criminal activities, along with electronic devices, including a computer and mobile phones, which may contain digital evidence of the hacking operations.

The suspects are currently being held in police custody as part of a preliminary investigation, overseen by the public prosecutor’s office, to uncover the full details of the case and identify all individuals involved in the criminal network.

In April 2024 a 21-year-old Frenchman, Thomas Clausi, was convicted Thursday in Morocco of “fraud” and illegal use of cryptocurrency and sentenced to 18 months in prison.

He was also slapped with a fine of about 3.4 million euros.

Incarcerated since December 23, 2021, Clausi, who presented himself as an entrepreneur before the judge, appeared before the criminal chamber of the court of Casablanca, competent for criminal cases.

He was accused of “fraud” and “payment with foreign currency on Moroccan territory”, in particular for having used bitcoins to buy a luxury car.

This comes a week after the Central Bank governor in Morocco stated that the crypto regulations will soon be out and are currently being adopted.