Court Orders Dh4.3 million Compensation in Fake Cryptocurrency Investment Scam

A Dubai court has ordered a woman to pay Dh4.3 million in compensation after convicting her of defrauding an investor of $1 million through a fake cryptocurrency deal carried out with her fugitive husband.

The case began when the investor was approached by a man claiming to own an investment company and expressing interest in funding his business. Before signing any agreement, the man demanded what he described as “proof of financial solvency” and arranged a meeting in Dubai to complete the verification process.

The man failed to attend the meeting and sent his wife in his place. During the encounter, the woman executed a premeditated scheme by distracting the investor and secretly swapping a box containing a digital wallet device with an identical one she had prepared. The switch enabled her to gain access to the cryptocurrency keys and transfer the assets to other parties.

Following an investigation, Dubai authorities registered the case as a criminal offence. The Dubai Misdemeanours and Infractions Court convicted the woman of theft, sentencing her to two months in prison, fining her approximately Dh1.8 million -- the value of the stolen assets at the time -- and ordering her deportation. The Court of Appeal later upheld the ruling, making it final.

The investor subsequently filed a civil claim seeking full compensation, arguing that the value of the stolen cryptocurrency had risen significantly during the period he was deprived of it.

After reviewing the case, the civil court ordered the defendant to pay Dh4.3 million in compensation for financial losses and lost profits, in addition to legal interest of 5 per cent until full settlement. The court ruled that digital assets constitute property under the law and that compensation must reflect their market value, including any appreciation.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.