Young man jailed for cryptocurrency investment fraud

TDT | Manama

Email: mail@newsofbahrain.com

A young man has been sentenced to three years in prison and ordered to repay BD65,000 after defrauding several individuals through fraudulent cryptocurrency investments. The man, who operated without the necessary licenses, solicited investments promising returns on digital currency trading platforms. According to lawyer Mariam Al Khaja, her client and others filed a lawsuit against the defendant after he failed to return their investments and subsequently avoided contact.

Trading

The defendant, operating in 2023 and 2024, collected a total of BD65,000 from multiple investors under the pretense of investing in cryptocurrency trading. He lacked the necessary licenses from the Central Bank of Bahrain or other relevant authorities to conduct such activities. During the investigation, the defendant admitted to receiving the funds with the intention of investing them in cryptocurrency trading, acknowledging his lack of the required license.

Repayment

He claimed that he lost all the invested funds due to trading losses, making repayment impossible. The court heard arguments from the defense, who claimed the elements of the crime were not present, citing the defendant’s ignorance of the Central Bank of Bahrain’s regulations and the implausibility of the events. However, the court found the defendant guilty based on the thorough investigation, the testimonies of the victims, the statements of the investigating officer from the Ministry of Interior, and the defendant’s confession to the Public Prosecution. These were deemed sufficient evidence to support the conviction.