Fake Crypto-currency menace on the Rise

The rise of digital penetration in the world has lead to an increase in the instances of cyber crimes and digital fraud in recent years. The latest in this series of frauds has been the instance of a company based out Singapore which has been promoting the fake currencies CryptoRiyal and SmartRiyal.?

What has happened?

• A Singapore-based company has launched two cryptocurrencies named CryptoRiyal and SmartRiyal which it claims are backed by the Saudi Government.
• Even the use of the Saudi Emblem which consists of two swords and a palm tree has been done to convince innocent investors of the currencies viability.
• The promoters of the cryptocurrencies have claimed that the ultimate goal of the currencies is to finance the construction of the city of NEOM which is a smart city and a tourist city which is being built in the north of the Saudi Arabian kingdom.
• The promoters have used fake marketing tactics and used unethical methods to inflate the price of the crypto-currency and lure unwitting investors to the fray.

What do the authorities say?

The Saudi Authorities have denied the use of any cryptocurrency in funding the construction of NOEM. They have also warned that any use of the Kingdom of Saudi Arabia name, national currency or national emblem by any entity for illegal promotion of any unsanctioned project will lead to legal action by the legal authorities in the Kingdom.

What is NEOM?

• NEOM is a planned cross-border city which will be built in northwestern Saudi Arabia.
• The Saudi Authorities plan to incorporate smart city technologies in its construction and encourage tourist potential.
• While Saudi Arabia aims to complete the first section of NEOM by 2025 with an estimated cost of USD 500 billion.
• Out of this, USD300 billion will be raised through the IPO of state-owned oil company Saudi Aramco.