Fraud alert over cryptocurrency falsely linked to Saudi Arabia

The cryptocurrency being peddled by Singapore-based cryptocurrency company. (Supplied photo)
Updated 21 August 2019

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.”

 


Houthi attack on Saudi Aramco facilities act of terror: Japanese defense minister

Updated 16 September 2019

Houthi attack on Saudi Aramco facilities act of terror: Japanese defense minister

TOKYO: Taro Kono, the defense minister of Japan, said that threats to his country’s oil supply was the “most worrying scenario” he could imagine in international relations, in the wake of attacks on Saudi Arabian oil production facilities. 

“The most pessimistic scenario right now is that something happens in the Straits of Hormuz and the oil supply gets cut down, and that would send a shock wave through the global economy. I think the price of oil is already rising after this attack on Saudi facilities, so that’s the most worrying scenario right now,” he told a conference in Tokyo, Japan.

However, speaking on the sidelines to Arab News, he insisted that Saudi Arabia would remain a reliable partner of Japan - which imports around 40 per cent of its crude from the Kingdom - and downplayed concerns about long-term supply problems.

“Saudi has been and will be an important source of our energy supply. We have international co-ordination, and we have reserves, so we are not really worried about that,” he said. 

Kono, who was until recently Japan’s foreign minister, said that his country would be seeking to promote diplomatic solutions to the latest Middle East conflagration. "We definitely need to ease the tension between those countries. As Foreign Minister, the last thing I was doing was calling the Iranian Foreign Minister and the French Foreign Minister to ease the tension the region through diplomatic actions, and I think it's important to continue doing it.

“This Houthi attack on Saudi is a little different, because it's a terrorist attack. I think we may require some kind of military operation against those drone attacks, and that's something out of Japan's constitutional boundary. I think Japan will be focusing on diplomatic efforts in easing tension in the region.”

He raised concerns about the apparent lack of sophistication in the recent attacks. “If it is really drones, that is a lot cheaper than any form of conventional missile,” he said.