Dubai Court Orders Woman to Pay Dh4.3 Million in Fake Crypto Scam

TLDR

• A Dubai court ordered a woman to pay Dh4.3 million in compensation for a crypto scam.

• The woman was jailed and deported after defrauding an investor of $1 million in a scam.

• The court ruled that digital assets are considered property under UAE law, influencing compensation.

• The defendant executed the scam by swapping a box containing cryptocurrency keys with an identical one.

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A Dubai court has ordered a woman to pay Dh4.3 million in compensation for defrauding an investor of $1 million through a fake cryptocurrency deal. The court ruling comes after the woman executed a carefully planned scam in collusion with her husband, who remains a fugitive. The case highlights a growing concern over crypto-related fraud and the legal actions taken against it in Dubai.

The scam involved an investor meeting with a man who claimed to own an investment company and was interested in financing the investor’s business. The man arranged a meeting in Dubai, insisting that “proof of financial solvency” was required before signing contracts. However, the man failed to attend the meeting, sending his wife instead.

How the Crypto Scam Was Executed

During the meeting, the woman executed the scam by swapping a box containing the digital wallet device’s access keys with an identical box she had prepared in advance. The investor, distracted by the woman’s actions, did not realize the switch.

As a result, she was able to seize control of the digital assets and transferred them to third parties. The value of the stolen cryptocurrency was around $1 million at the time of the crime.

Dubai authorities quickly launched an investigation, and the woman was convicted by the Dubai Misdemeanours and Infractions Court for theft. She was sentenced to two months in jail, fined Dh1.8 million (the equivalent of the stolen assets’ value at the time), and ordered to be deported. The court’s decision was later upheld by the Court of Appeal, making the ruling final.

Compensation and Legal Standing of Digital Assets

Following the criminal conviction, the investor filed a civil lawsuit seeking full compensation for the losses and lost profits. The investor argued that the value of the stolen cryptocurrencies had significantly increased over time, thus requesting compensation based on the market value, including any appreciation.

The Dubai civil court ruled in favor of the investor, ordering the woman to pay Dh4.3 million in compensation. The court also noted that digital assets are considered property under UAE law, setting an important legal precedent for future cases involving cryptocurrencies.

In addition to the compensation, the woman will also have to pay 5% legal interest until the full amount is paid.

Growing Concern Over Crypto Fraud

This case is one of many in the region that underscores the risks and concerns surrounding cryptocurrency transactions. As digital assets continue to gain popularity, there has been an increase in fraudulent activities targeting investors. Dubai has taken legal action to address this issue, with authorities focusing on both criminal and civil remedies for victims of crypto scams.

While Dubai deals with crypto fraud cases, Hong Kong has also seen a surge in crypto-related crime. Recently, Hong Kong police arrested 15 suspects involved in a daylight robbery where thieves made off with ¥1 billion ($6.4 million) in cash from employees of a Japanese cryptocurrency company. The robbers, armed with knives, seized four suitcases containing cash that the victims had brought to convert into cryptocurrency and Hong Kong dollars.

The crime occurred on December 18,, in the Sheung Wan financial district. Despite the thieves fleeing in multiple vehicles, the Hong Kong authorities swiftly apprehended several suspects. While the stolen funds have not yet been recovered, the police believe they have arrested the key individuals responsible for the heist.

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