Investor’s Crypto Account Wiped Out: Court Orders Broker to Repay $124,000

An Al Ain civil court has ordered a trading broker to repay $124,361 to a young investor after ruling that he violated their agreement by employing high-risk strategies and excessive leveraged trades that rapidly depleted the account.

The Civil, Commercial and Administrative Court terminated the trading arrangement and directed the broker to restore the investor’s losses. The court also awarded the claimant Dh10,000 in moral damages, in addition to court costs and legal fees.

Court documents showed the investor had deposited approximately $135,501 in digital currency (USDT) into a trading platform account and granted the broker authority to manage the portfolio in exchange for 30 per cent of the profits. Messages exchanged between the parties indicated a targeted daily return of 1–5 per cent and a stop-loss limit of 8 per cent per trade.

However, a court-appointed expert concluded that the broker adopted a high-risk and unprofessional trading approach, exceeded the agreed risk thresholds and engaged in margin trading beyond the invested capital. The report further noted that the use of a high-fee execution method generated more than $46,000 in platform charges within days, accelerating the losses.

The court held that the breaches justified termination of the contract and restitution under the UAE Civil Transactions Law.

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