Dubai Businessman Loses Dh2.2 Million in Bao Bao Panda Cryptocurrency Fraud; Police Launch Investigation

Dubai Police have launched an investigation after a businessman in the emirate lost Dh2.2 million ($600,491) in a cryptocurrency fraud involving a meme coin called Bao Bao Panda.

 

Al Riffa Police registered a fraud case against an Indian national accused of posing as a licensed virtual asset trader. The suspect allegedly persuaded the victim to convert USDT tokens worth $600,491 into Bao Bao Panda, claiming the investment would double.

 

A police report submitted to the Public Prosecution confirmed that the accused held no license to trade digital assets in the UAE and had violated federal anti-money laundering and virtual asset regulations. Authorities have issued a circular to track down the suspect, who reportedly fled the country in April.

 

Investigators found that the businessman made nearly 60 transfers of cryptocurrency to acquire the meme coin, which has since collapsed in value. The suspect allegedly created the impression of legitimacy by sharing promotional material, circulating a white paper that promised exchange listings, marketing campaigns, and even wildlife conservation initiatives.

 

The victim also alleged that an Indian politician and his son introduced him to the suspect during a visit to Dubai. He claimed the pair said they invested $50,000 in the token as a show of confidence, which he later alleged was a circular transaction benefiting them.

 

According to the complaint, the suspect kept up appearances for several months by providing updates and discussing expansion plans, while simultaneously offloading his own holdings from anonymous wallets whenever the price rose.

 

Meme coins, such as Dogecoin or Shiba Inu, are cryptocurrencies based on internet trends and typically lack intrinsic value. Their prices rely on hype, making them prone to speculation and fraud.

 

In February, Dubai’s Virtual Assets Regulatory Authority (VARA) issued an advisory cautioning investors that meme coins are unregulated, highly speculative, and susceptible to manipulation through social media. VARA reminded the public that all virtual asset promotions in Dubai must comply with its marketing and issuance rules.

 

 

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