Duhok arrests 2 in $15M cryptocurrency fraud

Shafaq News/ Authorities in Duhok have arrested two individuals accused of orchestrating a $15 million cryptocurrency scam, local security officials said on Tuesday.

A security source told Shafaq News that the suspects were operating a company dealing in electronic currencies, including Bitcoin, and were detained following multiple complaints from local residents. “The arrests followed numerous fraud allegations filed against the company,” the source said, noting that investigations are ongoing to uncover further details. Authorities described it as one of the first known cases of financial fraud involving cryptocurrencies in the region.

The Kurdistan Region’s Security Council had previously issued a directive banning all forms of cryptocurrency dealings, warning that violators—including individuals and companies—would face legal consequences, including arrest.

Ten countries, including Iraq, prohibit cryptocurrency transactions due to a range of regulatory and security concerns.