Quote from Alex bobby on February 5, 2025, 5:08 AM

Millions of Dollars Lost in a Kurdistan Investment Scam Disguised as a Stock Exchange

A shocking financial scandal has emerged in the Kurdistan Region, where millions of dollars have been siphoned away through fraudulent investment schemes disguised as stock market opportunities. According to Iraq’s Economic Network, several companies operating in this sector were found to be entirely fictitious, leaving investors with devastating financial losses.

How the Scam Operated

Mohammed Hussein, a member of Iraq’s Economic Network, revealed to Voice of America that a fraudulent website was created to facilitate stock purchases on international markets. However, the platform had no legitimate foundation, and unsuspecting investors lost vast sums of money.

Additionally, some fraudulent companies posed as gold and precious metal trading firms. Instead of genuinely investing in these assets, they embezzled investors' funds. Hussein elaborated on how these entities manipulated asset prices:

“Some companies artificially inflated their stock prices. For example, an asset valued at $100,000 was fraudulently marketed and resold for $500,000. Many people lost their money through these fake transactions or by investing in digital currencies.”

Lack of Regulation Enables Market Manipulation

Experts believe that the absence of regulations governing electronic trading in Iraq and the Kurdistan Region has left investors vulnerable to scams. Fraudulent online platforms have exploited legal loopholes, allowing unscrupulous businesspeople to deceive the public.

The stock market functions as an electronic platform where commodities such as oil, gold, and livestock are traded. Forex markets, which facilitate currency trading, also operate within this system. However, without proper oversight, these platforms become a breeding ground for manipulation and fraud.

In many cases, Kurdistan-based investors lack the necessary financial literacy to navigate these markets safely. Without regulatory protection, they become easy prey for sophisticated financial scams.

Investors Scammed by Bogus Trading Firms

One of the most alarming aspects of this fraud involves so-called trading firms that acted as intermediaries. Investors trusted these firms to manage their funds, only to find that the owners disappeared, taking the money with them.

A trader from Sulaimaniyah’s dollar market reported that a single company embezzled approximately $1.102 million under the guise of stock market participation. This company also defrauded 78 additional traders, with individual losses exceeding $300,000.

Asso Mohammed, a currency trader, shared his experience with Voice of America:

“The person who took our money in the name of the stock exchange is an Arab national. He was arrested around three months ago, but later released. Now, he has set up another company with our money and bought luxurious properties. We reported him to security forces, financial institutions, and government offices, but no action has been taken.”

He further expressed his frustration:

“I even reached out to Bafel Talabani, the head of the Patriotic Union of Kurdistan, and put pressure on the authorities regarding this Arab man who stole our money. Now, he is offering to return only $250,000 of the $1.102 million he took, but I refused the offer.”

Despite Losses, Interest in Online Trading Persists

Despite these devastating losses, many individuals in the Kurdistan Region continue to engage in online trading.

Azad Hassan, a grain merchant from the Garmiyan region, recounted his experience to Voice of America:

“Ten of us grain traders collectively handed over our money to a company for purchasing wheat and cereals. However, the company’s owner took all the money and later claimed bankruptcy in the stock market.”

He continued:

“The total amount of money he took is estimated at around 50 billion Iraqi dinars. We gave him our money specifically for grain purchases, not for stock market trading.”

A Call for Greater Oversight

The Kurdistan Region’s financial market remains highly susceptible to fraud, given the lack of oversight and regulation. Experts and victims alike are calling for urgent government intervention to implement stronger financial regulations, ensuring that similar scams cannot continue to operate unchecked.

Without immediate action, thousands more could fall victim to these fraudulent investment schemes, risking their life savings in an unregulated market filled with deception and exploitation.

Conclusion 

Millions of dollars have been taken from people in the Kurdistan Region through fake stock exchange companies. According to Mohammed Hussein from the Iraqi Economists Network, some websites were created to trade commodities internationally, but they were scams that stole people's money. Experts say the lack of laws to regulate online trading in Iraq and Kurdistan has allowed these scams to grow. Many people without financial experience invest in the stock market and lose large amounts of money, while some companies sell far more than their actual value.